Trading was pretty quiet this morning.
The major indices were slightly higher at the open. And 30 minutes into trading stocks were at session highs. But then the day turned into a bit of a roller coaster ride after that.
Stocks began to pull back late morning, with selling really kicking in around lunchtime.
Why the drop?
This time it wasn’t the Fed or China…it was because of news that House Speaker Nancy Pelosi was going to announce a formal impeachment inquiry against the President.
President Trump has had to deal with impeachment threats for awhile now. But Democrats are taking things more seriously after allegations that Trump threatened to withhold aid from Ukraine unless the country agreed to investigate business dealings with Joe Biden’s son. Trump has denied the allegations but says he did talk to Zelensky.
Although President Trump being impeached is unlikely, it’s a valid concern for the markets. When President Clinton was dealing with impeachment proceedings back in 1998, the S&P dropped 20%.
The NASDAQ led the major indices lower today, down 1.5% and closing below 8,000 for the first time since the beginning of the month.
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Here’s where the major indices ended the day:
- The S&P finished with an 0.8% loss. Losing 25 points, the S&P ended at 2,967.
- The DOW ended lower by 0.5%. Dropping 142 points, the DOW closed at 26,808.
- The NASDAQ was down 1.5%. With a 119 point loss, the NASDAQ finished at 7,994.
Crude Oil (CL) retreated to its lowest level since the Saudi refinery attacks. With a 2.2% loss, CL ended at $57.38 a barrel.
Netflix (NFLX) was one of the bigger losers today, down 4.3% after an analyst voiced concerns over Netflix’s earnings.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link