Trump Jr. emails trigger quick drop
It wasn’t a big move, and nor did it last long, but it was enough to remind bulls the market hasn’t gone completely deaf to politics.
The Dow Jones Industrial Average erased about 160 points in 20 minutes and volume in the most widely traded S&P 500 futures tripled as a gut check landed on traders just after 9 a.m. MST Tuesday. The catalyst was the release of emails by Donald Trump Jr. that said the Russian government backed his father’s presidential campaign and was trying to damage Hillary Clinton.
Revelations concerning former FBI Director James Comey sent the Dow to a 373-point plunge on May 17 — losses that were recouped in a week.
“The more the market has to grapple with events with Washington, the more we’ll see a situation where the market eventually breaks its will,” said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. Bloomberg News