Political jitters jolt the Dow
Latest Trump turmoil triggers 274-point dive
The political problems in Trumpland are now causing problems for Wall Street.
The Dow tumbled 274 points Thursday, its worst one-day drop in three months. The selloff was fueled by mounting concerns about President Trump’s ability to push through his economic agenda and fresh fears his closest economic advisers at the White House will abandon him like the nation’s top business executives did this week.
The stock market has shown resilience in recent weeks. It shrugged off saber-rattling between the U.S. and North Korea. Then, the Dow Jones industrial average this week marched higher three days in a row despite the latest controversy around Trump, who on Wednesday lost the backing of many of the nation’s most powerful CEOs after not denouncing forcefully enough the role of hate groups in the deadly weekend protest in Virginia.
The Trump controversy finally got the attention of investors Thursday when rumors of the pending departure of economic adviser Gary Cohn — which the White House shot down — fanned fresh fears Trump was being deserted by yet more influential people deemed critical to the success of his economic agenda.
The market, which is overvalued by many valuation metrics and, thus vulnerable, was also hurt by a spate of weak earnings reports. A terrorist attack in Barcelona also weighed on investors’ mood.