Trump impeachment? History suggests Wall Street ought not worry

Reuters Politics 1 month ago

(Reuters) - The move by Democrats in the U.S. Congress on Tuesday to launch a formal impeachment inquiry into President Donald Trump has caused nervousness on Wall Street - but history suggests investors need not worry.

House of Representatives Speaker Nancy Pelosi announced the probe over reports Trump sought foreign help to smear a political rival. The S&P 500 closed down 0.84%, hurt partly by the anticipation of Pelosi’s announcement.

While the uncertainty created by the move roiled the market, investors said the year-long U.S.-China trade war and damage it could do to the global economy remained the most pressing issues.

The removal of Trump, a Republican, from office appeared unlikely since it would require the Republican-controlled Senate to convict him in a trial by a two-thirds majority.

“It’s not going to happen, where you have a Republican Senate convict a sitting Republican president,” said BB&T Wealth Management Senior Vice President Bucky Hellwig, characterizing the 1998 impeachment of President Bill Clinton as a “nothing burger.”

Wall Street dropped and the dollar tumbled in the months ahead of President Richard Nixon’s resignation in 1974, when he was under threat of impeachment over the Watergate scandal.

But that market volatility also stood against a backdrop of Nixon’s decision to suspend the dollar’s convertibility into gold and a recession following the oil shock of late 1973, according to JPMorgan’s John Normand.

Market moves before and after Nixon resignation - here

After early volatility, Wall Street also weathered the 1998 impeachment of Clinton, who was later acquitted by the Senate.

The S&P 500 tumbled 10% in the 11 trading days leading up to Oct. 8, 1998, when articles of impeachment for Clinton were sent to the House. But the index recouped those losses by Oct. 21 and kept rising for the rest of 1998 to end the year up 27%.

S&P 500 and the Clinton impeachment - here

Source link
Read also:
The Sun › 1 week ago
THE Fall of the Berlin Wall happened 30 years ago today. Why was the Berlin Wall built and when did the wall come down? Here’s what we know. When did the Berlin Wall fall? The dismantling of the Berlin Wall was the climax of six months in which the...
Fox News › 0 month ago
House Minority Whip Steve Scalise, R-La., said on Monday night that former Secretary of State Hillary Clinton’s use of a private email server for government business--a practice that was found to include several violations--“ought to be...
Business Insider › Opinions › 3 weeks ago
Elizabeth Warren's presidential run has become polarizing on Wall Street. There are some people who like her policies, and some people who worry about what those policies will do to their jobs and their wealth. There's also a third category of people...
Fox News › 1 month ago
In the latest episode of Fox Nation's "No Interruption," real-life 'Wolf of Wall Street' Jordan Belfort spoke out against Sens. Elizabeth Warren and Bernie Sanders, both of whom have called for a crackdown on Wall Street and financial institutions.
The New York Times › Finance › 1 week ago
The toppling of the Berlin Wall made free market economics the norm across Europe - but which financial markets have done the best since then? Wall Street and the BRICs, of course.
Reuters › Finance › 1 week ago
The toppling of the Berlin Wall made free market economics the norm across Europe - but which financial markets have done the best since then? Wall Street and the BRICs, of course.
Business Insider › Politics › 1 week ago
Berliners tried to send President Donald Trump a chunk of the Berlin Wall on Saturday, along with a message saying "no wall lasts forever." Saturday marked the 30th anniversary of the fall of the Berlin Wall. The stunt was organized by the nonprofit...
Business Insider › Finance › 1 month ago
Business Insider compiled a list of the people leading the most innovative and ambitious tech projects at Wall Street's biggest firms. We asked Wall Street players and industry insiders who was spearheading the most cutting-edge tech initiatives. The...
Business Insider › Finance › 1 month ago
Snap, the owner of popular photo-messaging app Snapchat, got a new pair of Wall Street-high price targets on Tuesday. Aegis Capital raised Snap's price target to $24 from $19, the highest on Wall Street, and reiterated its "buy" rating on the stock...
Business Insider › Finance › 1 month ago
Wall Street giants Blackstone Group and Citadel have reportedly held deal talks. Blackstone has held discussions to take a stake in the hedge fund itself as well as its securities-trading business, according to a report in The Wall Street Journal...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google