– This is the script of CNBC's news report for China's CCTV on March 22, Wednesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
U.S. equities posted their worst day of the year Tuesday as banks faced pressure from falling yields, while investors turned their eyes to a key House vote.
The Dow Jones industrial average fell around 240 points, with Goldman Sachs contributing the lion's share of the losses. The S&P 500 dropped 1.2 percent, with financials falling more than 2.5 percent to lead decliners. The indexes were also posted their first decline of at least 1 percent since October. The Nasdaq composite reached a fresh all-time high before closing 1.8 percent lower.
The decline is due to a potential risk that House Republicans are expected to vote on repealing and replacing Obama's Affordable Care Acton Thursday.
Since President Donald Trump's victory last November, expectations for tax reform, deregulation and more government spending have increased dramatically. That said, the Trump administration indicated that health care reform would take place ahead of tax reform.
[RODGER BAKER, Stratfor VP of Strategic Intelligence] "Right now it looks like its heading towards a delay unless they are able to change even more within the bill before they try to bring it up. This is part of the whole partisan ... there are difference fractions within the Republicans in terms of what they want out of this, and they are also looking at their own re-elction chances and their own constituences as well."
The Freedom Caucus, a key group of House Republicans, threatened to issue a formal statement of opposition to the Obamacare replacement bill, which would delay the vote, unless the language in the bill changes dramatically. According to NBC News, at least 26 Republicans are voting against or leaning toward voting against the bill. House GOP leaders can only afford to lose 21 Republican votes.
[DAVID JOY, Ameriprise Financial Chief Market Strategist] "I think if we do not get a repeal and replacement of Obamacare, we will not get tax reform, at least not this year. The math doesnt work because they want to know what the basic is and as a result they want to know how low they can lower the rates."
The market will also focus on speeches from Fed officials later this week.
CNBC' Qian Chen, reporting from Singapore.