Why Controversy Over Trump Sends Shockwaves Through US Stock Markets

The US stock market has plummeted over US President Donald Trump’s alleged attempt to stop former FBI Director James Comey from investigating former National Security Adviser Michael Flynn. Speaking to Radio Sputnik, market strategist Marc Ostwald shared his views regarding the potential prospects of the further market crash.

The US stock market has slumped over mainstream media reports that US President Donald Trump allegedly asked former FBI Director James Comey to halt an investigation into former national security adviser Michael Flynn and his suspected “ties” with Russia.To add to the growing uncertainty the Justice Department appointed Wednesday a special prosecutor to investigate possible “collusion” between Trump associates and Russian officials.

Although the White House keeps denying the allegations, the looming threat of a potential impeachment may jeopardize Trump’s bold plans to advance tax cuts and other growth measures that boosted stocks.

As a result “the Dow and S&P recorded their worst day since September of last year” on Wednesday, while “the Nasdaq composite posted its worst session since June 24,” CNBC reported.

Radio Sputnik got in touch with Marc Ostwald, Global Strategist at ADM Investor Services, asking him to comment on the matter.

“In market’s terms basically there were a lot of doubts mounting for quite some time that a lot of promised reforms, tax cuts, changes to the Dodd-Frank [Wall Street Reform and Consumer Protection Act] are just not going to be delivered because… of a huge gulf between the executive [branch] i.e. the President and Congress i.e. legislature,” Ostwald told Radio Sputnik.

  • A d v e r t i s e m e n t

According to the expert, while looking at the incoming economic data, financial markets are “probably overstating some of the weak numbers that we’ve had.”

However, the question arises whether the whole optimism and the…

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