Market Lower on Washington Turmoil
Democrats are using the word "impeachment" again, but they have also used it these past few months. 25 different Democrats used the word to describe Trump, and that was before the latest scandal, which Wall Street reacted to yesterday. The Dow Jones industrial average lost 368 points and closed at 20,611—the biggest loss of the year.
For instance, Maxine Waters, a Democrat California Congresswoman, was one of the first Democrats to use the word. On January 17, before Trump was sworn into office. She said that if Trump came up with the name "Crooked Hilary" then he should be looking for impeachment. However, the Democrats are hoping their latest impeachment chants are not drowned out because of earlier cries
Certainly, the market is reacting differently; many industrial stocks such as Terex, Caterpillar, and Deere were lower as investors reconsider a possibility of stimulus infrastructure. Banks ,also, were heavy decliners as investors are no longer as confident in banking regulations being cut if Washington continues to remain shrouded in controversy.
Unfortunately for the market, Trump has become the issue and not that of loosening regulations. The market digested the news that Trump reportedly asked former FBI director James Comey to drop his investigation into Michael Flynn, the former National Security Adviser.