'Trump trade' loses steam

U.S. stocks are drifting as momentum comes out of the “Trump trade” that swept Wall Street following Donald Trump’s presidential victory.

The S&P 500 was flat early Tuesday, coming off its latest all-time high. The Dow Jones Industrial Average was up 39 points, and the Nasdaq composite was down 0.1%.

Stocks have been rising on expectations that Trump’s preference for lower tax rates, higher tariffs and less regulation will mean faster economic growth.

Markets also anticipate bigger U.S. government debt and higher inflation. Some sectors that outpaced the market since the election, including banks and smaller stocks, gave back some of their gains.

AP’s earlier story follows below.

 Global shares mostly fell Tuesday, despite a rally on Wall Street in stocks seen as benefiting the most from Donald Trump’s reelection as U.S. president.

France's CAC 40 declined 0.9% in early trading to 7,358.92, while Germany's DAX fell 0.8% to 19,296.75. Britain's FTSE 100 shed 0.7% to 8,066.66. U.S. shares were set to drift higher with Dow futures slipping nearly 0.1% to 44,412.00. S&P 500 futures fell less than 0.1% to 6,028.25.

Japan's benchmark Nikkei 225 reversed early gains to decline 0.4% and finish at 39,376.09, weighed down by uncertainty about how Trump's policies, including tariffs, may affect local industries.

Australia's S&P/ASX 200 lost 0.1% to 8,255.60. South Korea's Kospi declined 1.9% to 2,482.57.

Chinese tech stocks have been declining lately, while investors also have their eyes on upcoming earnings reports out of China.

Hong Kong’s Hang Seng dropped 2.8% to 19,846.88, the first time the index fell below 20,000 points since China announced a stimulus package in September. The Shanghai Composite lost 1.4% to 3,421.97.

Several pieces of what’s known as the “Trump trade” has helped drive the market, as investors try to identify which companies will be winners under a second Trump term.

Stocks of companies more focused on the U.S. economy were also rising because they’re seen as benefiting more from Trump’s America First policies than big multinational companies.

In energy trading, benchmark U.S. crude rose 17 cents to $68.21 a barrel. Brent crude, the international standard, gained 20 cents to $72.03 a barrel.

In currency trading, the U.S. dollar edged up to 153.91 Japanese yen from 153.72 yen. The euro cost $1.0630, down from $1.0660.