President Trump’s Eldest son the Trump Jr. in a meeting with a “Russian government attorney,” released an email chain and within half an hour there was a drop of 150 points in the Dow.
The sudden drop was noticeable and it represented a decline of 0.7%. However, later there was a brief description that the market recovered its losses.
The chief market strategist at Wunderlich Securities, Art Hogan said over this;
“Trump Jr.’s email release at the very least got the markets concerned that the policy agenda might get pushed out a bit.”
Whereas it is seen that stocks have rallied dramatically after President Trump got elected. On the hand now Trump Jr. delivered an emails chain that outlines the fact that during last summer’s Trump Jr. agreed to meet a “Russian government attorney”. This government attorney was supposed to have “very high level and sensitive information” that could eventually “incriminate” Hillary Clinton.
By the record, the chain of emails was released at 11 a.m and by 11:27 there was a fall to 21,285 on the Dow with a decline of 150 points. However, after this loss, the Dow recovered it’s losses back to 21,405.
On the other hand, Trump Jr. emails also made an impact on other markets as a modest negative reaction. Whereas the Gold prices made a rise 0.5% that was a signaling a note of caution however not outright panic.
On Monday the emails also caused CNNMoney’s Fear & Greed Index of market sentiment to flip into “fear” mode from “neutral” mode.
In a brief market retreat asked by White House came up and Sarah Huckabee Sanders, the deputy White House said the press on Tuesday:
Trump remains “focused on doing everything he can to strengthen the economy.”
While the score on investors paying attention to the political setback in Washington is seen by the responses over Wall Street.
Some Market veterans said that it would be wiser turning out into a “House of Cards”-like drama and focus instead on the fundamentals: earnings and the economy
An independent wealth management firm also shared their views on this and Andres Garcia-Amaya, global market strategist at Zoe Financial said;
“No matter what is tweeted out, if companies are reporting strong earnings, that overwhelmingly matters more than any message coming out of Washington,”