US Markets

Analyst: The ‘Trump trade’ has turned into a ‘Trump fade’

Policy is no more or less stalled than before: Santoli

With former FBI Director James Comey's testimony before the Senate Intelligence Committee and the elections in the U.K. today, those headlines alone could have been enough to stir the market.

However, the markets had a relatively steady day and closed a bit higher.

Steve Grasso, director of institutional sales at Stuart Frankel, spoke on CNBC's "Closing Bell" Thursday about the stability of the market amid alarming worldwide headlines.

"[The market] deals with whatever is right in front of it, and it seems to have become calloused to whatever you throw at it," Grasso said.

"We've seen North Korea headlines, impeachment headlines. ... Impeachment was the only one I thought had a little bit of a lasting effect," he said. "But then the market just spit it out once people Wikipedia-ed impeachment and saw how long the process would take and how unlikely it would be with a Republican-run Congress for that to even ... take hold."

Tony Dwyer, equity strategist & managing director for Canaccord Genuity, also mentioned how President Donald Trump's ability to move the market and stocks has diminished throughout the length of his presidency.

"The Trump trade was a Trump fade since December," Dwyer said. "If you look at the banks, the industrials, the energy, the materials against the anti-Trump trade, technology and health care, that has been an awful trade over the course of the last four or five months."

However, Mark Luschini, chief investment strategist for Janney, believes a lot of worldwide events such as Brexit won't have a huge global impact.

"Brexit's largely localized to the U.K., has really little implications on the global basis," Luschini said. "In the meantime, the market sees [some worldwide events] as distant in the future or not yet black swans, and, therefore, continues to advance on sturdy economic news and reasonably strong corporate profit growth."

Divine Capitals CEO Dani Hughes also pointed out how different Wall Street reacts to policy changes under a Trump presidency than other presidencies.

"Traditionally on Wall Street, we like when there's gridlock, we like when there's nothing happening, we like when there's no new policy introduced," Hughes said. "However, this market is really reacting to what we were hoping would happen, which is tax reform and regulatory reform, and we can't even get to that because of what's happening down there. So, it becomes unmanageable at a certain point when nothing happens, when no policy gets introduced."