The Dow Jones Industrial Average fell sharply today, plunging 373 points (around 1.8%) to 20,606 as investors worried that the growing chaos in Washington may prevent the Trump administration from moving forward on key policy initiatives including tax reform, deregulation, and investment in infrastructure, according to NBC News.
“This is clearly Washington-driven,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management. “It’s a lot like 1998-99, when the market had to deal with the Monica Lewinsky scandal.”
Investors had been riding a wave of post-election euphoria, driving US stocks to record highs, but that rally came to halt after yesterday’s reports that Trump had allegedly asked FBI director James Comey to call off an investigation of former National Security Advisor Michael Flynn.
The CBOE Volatility Index, which gauges the level of fear among investors, surged by nearly 40% today – its largest increase in eight months.
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