- Fears that the US Senate’s Hong Kong bill would disrupt trade talks hit the Dow on Wednesday.
- Dow giant Apple must now deal with the genuine likelihood of further tariffs this December.
- Stocks were pressured as Ambassador Gordon Sondland raised the odds of impeachment with a bombshell testimony in Trump’s impeachment hearings.
The Dow Jones fell more than 150 points on Wednesday after the US Senate approved a pro-Hong Kong bill, worsening the state of US-China relations.
A surprising admission of a “quid quo pro” in the impeachment hearings from a perceived Trump ally ensured that the Dow remained under pressure throughout the trading session.
Dow Jones Struggles as Political Incidents Batter the Stock Market
Minutes before the closing bell, the Dow Jones Industrial Average had nosedived 157.90 points or 0.57%, dropping the index to 27,776.12.
Of the three major US stock market indices, the Nasdaq was the weakest with a 0.71% loss, while the S&P 500 (-0.55%) and Dow Jones were close behind.
FOMC minutes were released today, but the Fed’s outlook was mixed. That was expected, so the release had had little-to-no impact on markets.
Trump Impeachment Hearings Take Center Stage
The impeachment hearings provided substantial gravity on the Dow on Wednesday, as three days of diminishing odds were erased by the interrogation of Ambassador Gordon Sondland, the top-ranking envoy to the EU, who is also a Trump donor and appointee. Sondland testified that, in his opinion, there was a “quid quo pro.” The stock market is giving this some credence given his partisan ties to the Republican party and the president in particular.