The Wall Street on Aug 22 measured renewed political worries surrounding Donald Trump’s impeachment versus his strong corporate earnings after the Dow Jones Industrial Average slipped by 89 points, closing at 25,733.60. As tech and energy outperformed, the S&P 500 closed largely unchanged.
Energy stocks witnessed a boost by a three percent rally in oil. The Nasdaq Composite closed at 7.889.10 after it rose to 0.4 percent. Amazon and Netflix gained 1.1 percent and 1.9 percent respectively. The move on Aug 22 took place as the present bull market was set to become the longest on record. As target shares jumped on strong earning, it helped the stocks offset some of the losses.
Jeff Zipper, managing director of investments, U.S. Bank Private Wealth Management mentioned that after the crisis, the overall sentiment in the financial markets was very low that it seemed they were going to get a bounce. He, however, added that they were probably not expecting it to be of this magnitude.
Amidst the rumors of Donald Trump’s impeachment, his former personal lawyer, Michael Cohen pleaded guilty to eight counts pertaining to campaign contributions, tax fraud, unlawful corporate contributions, and making false statements to a financial institution. He, however, admitted to making payments to two women on Trump’s behest.
Paul Manafort, former campaign manager for Trump, was found guilty on eight counts in a separate case. Out of the eight counts, five of them were related to tax fraud, one to failing to file foreign bank account reports, and two to bank fraud, as per the CNBC report.
After the news flash, stock futures fell overnight but quickly jumped off their lows. Janet Johnston, portfolio manager, Trim Tabs Asset Management said that the political disruptions caused by Trump are creating a lot of noise in the stock market.
While the industry is reeling under the fears surrounding Donald Trump’s impeachment, earlier this month, the Federal Reserve released the minutes from its meeting. As per the minutes of the meeting, the central bank officials are concerned that the ongoing trade war is indeed one of the biggest threats to an otherwise strong economy.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]