Breakingviews: Trump’s stock-market rally has no clothes

Richard Beales
Donald Trump
Nicholas Kamm | AFP | Getty Images

Investors need to get real about the Donald Trump rally. The S&P 500 Index is up 7 percent since the eve of his election as U.S. president, even after a Monday dip. The hope is that Trump's promises of cuts in taxes and red tape will unfold without a hitch, while those that would slow trade and immigration won't happen. The weekend's chaos shows otherwise.

An executive order signed on Friday immediately restricted visitors, returning visa holders and even, to start with, legal permanent residents who are citizens of seven predominantly Muslim countries from entering the United States. Enforcement confusion, spontaneous protests at airports, legal challenges and more were the result.

More In Pro News and Analysis

CNBC ProThe timing is right to buy these 'significantly undervalued' stocks, analysts say
CNBC ProSantoli's Friday market notes: The inflation mini-panic subsides amid a broad rally for stocks
CNBC ProAs growth stocks struggle, Wall Street analysts say bet on these value names