The U.S. stock fell on Wednesday morning after Gary Cohn, the head of President Donald Trump’s National Economic Council, plans to resign.
The Dow Jones industrial average fell more than 300 points at the opening. But it rebound soon and was traded 115 points lower. While S&P 500 fell 0.25 percent to 2,721.76. The Nasdaq composite open 0.7 percent lower, but it was traded even in the morning.
Cohn’s resignation come after President Donald Trump administration announced the plan to impose 10 percent tariffs on aluminum imports and 25 percent on steel imports last week. Cohn's departure date is expected to come in the following weeks.
Cohn, the former president at Goldman Sachs, is seen to support more business-friendly policies. His leave sparked investor concerns over a potential trade war in the near future. Cohn’s departure also come when the White House that is seemingly in constant turmoil
"His departure has caught investors off guard," said Alec Young, managing director of global market research at FTSE Russell, according to CNBC. "Cohn was against tariffs, so investors are assuming his departure reflects the presidents desire to forge ahead with his tariff agenda despite opposition from Republican Congressional leadership."
According to MarketWatch, Fawad Razaqzada, a Forex.com analyst, said in a note. “A lot will now depend on who Trump chooses to replace Cohn. If his replacement is someone deemed to be in favor of free trade, much like Cohn, then that should be a market-friendly outcome. However, if it is a trade hawk, then panic is only likely to increase among market participants,” said Fawad Razaqzada, a Forex.com analyst, in a note.