Stock Market

Trump impeachment History suggests Wall Street ought not worry

   Download Android App    Share in      FullScreen   CheckVideos

The move by Democrats in the US 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 per cent, hurt partly by the anticipation of Pelosi’s announcement. While the uncertainty created by the move roiled the market, investors said the year-long US-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 JP Morgan’s John Normand. 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 per cent 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 per cent.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21