Dow dives 373 points as Trump drama rattles market

Getty Images

Getty Images

The Dow Jones industrial average fell 372 points, and both the Dow and S&P 500 suffered their worst percentage drops since September 9.

The Dow average lost 372.82 points, the most in eight months, while the Nasdaq Composite Index plunged 2.6 percent for its steepest drop since June 24.

Financial companies led stocks sharply lower in early trading as investors fretted over the potential fallout roiling the Trump administration.

"Market participants figure that there is virtually no chance of any US company tax cuts getting through the Congress while President Trump is defending the allegations of an obstruction of justice - an impeachable offence", Commonwealth Bank of Australia said in a note on Thursday.

Bank stocks, which outperformed in the post-election rally, were the worst hit.

The sell-off snapped an unusually long period of calm after hitting a series of record highs.

The Standard & Poor's 500 index slumped 16 points, or 0.7 percent, to 2,383.

US stock futures were off 0.5 per cent, though they were still close to record highs.

Investors piled into assets they perceive as havens, sending gold up 1.8% to $US1259.00 an ounce, and the yield on the benchmark 10-year Treasury note fell to 2.219% from 2.329% on Tuesday.

Bond prices rose sharply.

The ICE US Dollar Index, which measures the dollar against a basket of six currencies, fell 0.6% and was on track for its lowest close since before the election.

-Crude futures added 1.25 percent, reversing an earlier 1.3 percent loss, with gains accelerating after the release of USA government data on inventories.

The news came after a tumultuous week at the White House when Trump unexpectedly fired Federal Bureau of Investigation director Comey and reportedly disclosed classified information to Russia's foreign minister about a planned Islamic State operation.

Football divers facing retrospective FA bans from next season
The FA explains that when there is "clear and overwhelming evidence" that a player has deceived a referee, he could be banned. The player can then either acknowledge guilt and accept the punishment offered by the compliance officer, or appeal.

MR Trump had already been facing pointed questions about his discussions with Russian diplomats during which he was reported to have disclosed classified information. Bank of America sank 2.7 percent and Wells Fargo lost 2 percent.

It's always easy to blame what's happening in financial markets on the biggest headline of the day. The VIX, Wall Street's "fear gauge", shot up to 13.72, its highest level in almost one month. Investors shifted into USA government bonds, pushing yields lower, and into gold. Gold future headed for a sixth straight gain, climbing 1.9 percent.

Banks are leading US stock indexes sharply lower in midday trading as bond yields fall, which will mean lower interest rates on loans. Even with Wednesday's declines, the S&P 500 stock index is up 10.2 percent since last November's USA elections though.

The euro added 0.6 percent to $1.1152, extending Tuesday's 1 percent surge and heading for the highest since November 4.

The dollar dropped a sixth day, while Treasury 10-year yields tumbled below 2.25 per cent.

ENERGY: Benchmark U.S. crude oil futures slipped 15 cents to $48.92 a barrel in electronic trading on the New York Mercantile Exchange.

Oil and gas stocks retreated 1.2 per cent despite higher crude oil prices.

The pound rose above 1.30 against the U.S. dollar for the first time since September, as strong United Kingdom retail sales gave a boost to sterling and jitters surrounding calls for Donald Trump's impeachment weighed on the greenback. Copper was little changed at 2.54 dollars per pound.

The S&P 500 was also tracking towards the biggest one-day drop in more than seven months.

MSCI's gauge of stocks across the globe fell 1.2 percent, while European shares ended down 1.4 percent.

In Europe the Stoxx 600 Index finished the session with a decline of 1.2 percent from the previous close.

Polcari added he expected the market to fall even further. Japan's Nikkei 225 dropped 0.5 percent, while South Korea's Kospi dipped 0.1 percent.

Recommended News

  • American Midstream Partners, LP (NYSE:AMID) Gross Margin Score Update

    American Midstream Partners, LP (NYSE:AMID) Gross Margin Score Update

    The pipeline company reported $0.33 earnings per share for the quarter, missing the Zacks' consensus estimate of $0.35 by $0.02. Spirit Of America Management Corp increased Magellan Midstream Partners Lp (MMP) stake by 11.4% reported in 2016Q4 SEC filing.
    'Supernatural' is doing a Scooby Doo crossover episode-yes, really

    'Supernatural' is doing a Scooby Doo crossover episode-yes, really

    Then Lucifer (Mark Pellegrino) battles Sam, Dean and Castiel (Misha Collins) for control of his unborn child". Even though some viewers thought this was a joke, it has been confirmed that it is really happening.

    Betty Shelby: Tulsa Cop Who Shot Unarmed Terence Crutcher Acquitted by Jury

    Shelby asked Crutcher if the vehicle was his, but only mumbled to himself and didn't respond, according to an affidavit . That remark was likely related to evidence that her brother lay bleeding in the street before anyone approached to help.
  • Vice President Jahangiri Quits Iran Presidential Election Race

    President Donald Trump's repeated denunciations of the Iran nuclear deal could add fuel to charges by hard-liners that Mr. Rouhani also hinted that the military forces were participating in the electoral campaign of Raisi in an illegal way.

    Multiple injuries as auto hits people in New York's Times Square

    Images on social media also showed people being taken away on stretchers and other casualties strewn around the walkway. The vehicle crashed into a pole and came to rest at 45th Street and Broadway before police took the driver away.

    Former Ragin' Cajuns TE LaDarius Green Released By Steelers

    Green (concussion) was released by the Steelers on Thursday following a failed physical, Teresa Varley of reports. One year after signing a four-year contract with the Steelers, Ladarius Green is looking for a new home.
  • Trump won't move United States embassy in Israel to Jerusalem

    Bush pledged to move the Israel embassy in their campaigns, only to abandon the promise in the face of political reality. In any event, applying the waiver provision to the law's recognition of Jerusalem as Israel's capital makes no sense.
    Tennessee teacher indicted on sex, obstruction charges

    Tennessee teacher indicted on sex, obstruction charges

    Lawyers for the victim's family say she is back home and under treatment by mental health experts specializing in trauma. Cummins faces up to life in prison if convicted of the federal charges against him, and a minimum of 10 years.

    Kyle Lowry's Appearance Steals The Show During Toronto Raptors Loss

    It is likely they will get about a week off again until the Eastern Conference Finals begin. "It's going to be a long summer". Kyrie scored the Cavaliers next 11 points to give the Cavaliers a 103-95 lead and to give the Cavaliers some breathing room.
  • Kezia Dugdale: General Election could determine if United Kingdom continues to exist

    She will claim that with the "help" of Labour voters, her party can defeat the SNP in "many places" across Scotland. He said the nine suspended councillors in Aberdeen "broke those rules".

    EUROPOL admits stunned by scale of cyberattack

    In this May 12, 2017, photo, a display panel with an error can be seen at the main railway station in Chemnitz, Germany. Two security firms - Kaspersky Lab and Avast - said they identified the malicious software in more than 70 countries.
    Sen. Burr says Flynn hasn't responded to subpoena

    Sen. Burr says Flynn hasn't responded to subpoena

    Trump fired FBI Director James Comey last week, prompting some to call for an independent prosecutor to lead the investigation. Flynn, a retired Army lieutenant general, was sacked from his position as Trump's national security adviser in February.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.