Skip to main content

Drama in Washington Rattles Wall Street, and Stocks Dive - The New York Times

posted onMay 18, 2017
>

Article snippet: Confidence in President Trump’s agenda to stoke economic growth was questioned Wednesday, as stocks tumbled and the dollar weakened. The sell-off was startling because it followed months of a steadily climbing, tranquil stock market, a rally that came to be known as the Trump bump. And domestic employment and corporate profits have been strong, usually a boon for stocks. Yet investors, who have shrugged off previous turmoil in the Trump administration, were clearly rattled by the most recent episode. Some on Wall Street speculated about whether the White House’s pro-business pledges to cut taxes, lighten regulation and increase infrastructure would be thwarted by the growing tumult in Washington. Some bank analysts even discussed the probability of impeachment. And at a gathering of big money managers in Las Vegas, the former chairman of the Federal Reserve, Ben Bernanke, said he was worried about the stability of Mr. Trump’s leadership. “I think it’s a reasonable concern, obviously,” Mr. Bernanke said. He later added that after years of a strong economy, statistically speaking, it was time for a slowdown. “Over the next four years,” he told an audience of hundreds of investors, “there is a pretty good chance we’ll have a downturn.” The question is whether it began on Wednesday. The New York Times report Tuesday that Mr. Trump had asked James B. Comey, then the F.B.I. director, to scuttle an investigation shook markets around the world. Stocks ended lower in Asia... Link to the full article to read more

Emotional score for this article