>> A rought and tumble session for global markets Wednesday. Investors pushing the sell button with vigor. The Dow falling nearly 400 points by the close in the worst day for stocks since September. And the selling wasn't limited to the US. Stocks across Europe tumbling as well, on fear the Trump administration could be headed for legal limbo after reports, the president tried to interfere with a federal investigation.
I'm Congley Gibbs in New York. With phrases like obstruction of justice and impeachment being thrown around Washington prematurely, investors are now realizing that their hopes of tax cuts, infrastructure spending and even regulatory reform all of the so called growth policies that propelled Wall Street to record highs after Trump's win in November, now being pushed further and further away.
Banks getting hit the hardest since they have the most to lose as the White House's economic agenda gets forced into the slow lane. The Dow's financial components like JP Morgan Chase and Goldman Sachs wiping out over one hundred points in the blue chip average by themselves and it's not just the globe's big financial players that were punished.
Smaller US regional banks also getting hurt, the stampede out of riskier assets like stocks enter safer assets like gold and government bonds sparking the biggest one day drop in lending rates in almost a year, and that will make it harder for banks to make money. The dollar also caught up in the downdraft losing all of the gains made since Trump's win.
That win looking so fragile now. That bet makers in London are betting there's a 55% chance Donald Trump won't even serve out his full term. Drama in the White House now emerging as the investment's world's top worry.