The three largest U.S. stock market indexes all fell on Wednesday as Washington D.C. turmoil regarding President Donald Trump and his administration ramped up yet again.
The S&P 500, Nasdaq, and the Dow all dipped on the back of two new major D.C. and Trump-based controversies. For months, the president has stirred the 24-hour news cycle with a seemingly endless amount of tweets and unprecedented moves. In spite of this, the markets kept on chugging along.
This all changed on Wednesday, when the S&P 500 slipped 1.82% and the Dow dropped 1.78%. The Nasdaq has experienced the biggest fall, down 2.57%. On top of that, however, gold is up almost 2%, with Barrick Gold ABX up 0.88%.
In another interesting ripple, the Chicago Board Options Exchange’s Volatility Index VIX—often referred to as the “investor fear gauge”—skyrocketed 44.88%. The move was its biggest since September.
These market indicators could signal that investors are now indeed worried that Trump and his administration’s pro-growth initiatives might begin to fall apart. The president’s economic agenda of corporate tax cuts, infrastructure spending, and banking regulation reforms sent the market on a historic run since Trump took office last November.
But the news that began to circulate yesterday, first reported by the New York Times, claiming that former FBI Director James Comey compiled a memo stating that Trump asked Comey and the FBI to discontinue their investigation into former national security adviser Michael Flynn.
Trump also shared potentially compromising Israeli-gathered intelligence with Russian officials in the Oval Office last week—actions he defended on Tuesday via Twitter (TWTR - Free Report) .
Before Wednesday’s wave of new White House scandals, both the S&P 500 and Nasdaq were at record highs this week. But despite today’s drop off, the S&P 500 and the Dow remain up roughly 5% this year. The Nasdaq is still up roughly 11% year-to-date.
