Political Upheaval In U.S. Causes Global Markets To Slide

May 18, 2017

Global markets continued the sell-off that started on Wall Street on Wednesday. Europe, the UK, and Asia are all down one percent or more. In the U.S., Dow futures are also down.

As Washington talked yesterday about alleged obstruction of justice, the S&P lost almost 2 percent and small caps lost almost 3 percent. Michael Purves, strategist for Weeden and Company, says Wall Street appears to be losing the basket of goodies promised after November's election.

"Does Trump have the ability to get any legislation through Congress? The probabilities of that seem to be diminishing by the day right now."

But many traders are scoffing. Keith McCullough, CEO for Hedgeye, says the market has been hot and waiting for a reason to pull back.

"I think the media has been looking to blame a market decline on Trump for seven months."

Investor havens, like gold and Treasuries, are up and the value of the U.S. dollar is down to pre-election levels.