U.S. equities slip with Dow more than 370 points

U.S. equities

Investors are currently worried about the news from Washington United States and this led markets in the country lower, especially 30-stock index Dow.

Last Tuesday, a report from the New York Times showed that the ex-FBI chief James Comey gathered memo’s outlining a discussion in which U.S. President Donald Trump reportedly requested him to interrupt a probe into his former national security adviser Michael Flynn, as confirmed by NBC News. Later that day, Jason Chaffetz, chairman of House Oversight Committee, asked the Federal Bureau of Investigation (FBI) for any records it possesses on Comey and Trump’s communications.

The NASDAQ composite edged down 2.6 percent or 158.60 points at 6,011.24, its lowest since June 24. The S&P 500 was 1.8 percent lower or 43.64 points at 2,357.03 driven by its financials dropping about 3.1 percent as it was dragged down by banks, with SPDR S&P Bank ETF (KBE) lower by 3.9 percent. Due to the poor performance from Goldman Sachs, the Dow Jones Industrial average lost more than 370 points and settles at 20,606.93.

U.S. Bank Private Client Reserve’s managing director of investments David Schiegoleit says that earnings have given a decent fundamental base for the market, but the scepticisms on whether this news is the straw that disrupts the camel’s back is still high.

Stocks have already been rallying all throughout the year driven by the hopes on lower taxes. Major indexes in the U.S. have been hitting record levels, with the NASDAQ and S&P touching all-time highs lately. The administration suggested that it utilizes the stock market as its “economic report card”.

However according to General Electric’s former CEO Jack Welch, if by chance president Trump will be kicked out of the office, U.S. equities would suffer.

 

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