The S&P 500, Dow and NASDAQ are having their worst day in about eight months, which is a direct result of various reports that have put the White House on the defense. The latest reports concerning a leaked memo by former FBI chief James Comey raised questions about whether President Donald Trump tried to interfere with a federal investigation. Allegedly President Trump asked Comey not to investigate former National Security Adviser, Michael Flynn, and his possible relationship with Russia.
Investors have reacted to this scandal harshly as concerns over divisions within the White House, and the investigation into potential ties to Russia are taking a toll. It is unclear now whether or not POTUS and his administration will be able to execute their business-friendly agenda.
"I think the biggest issue right now is what does this mean for the plan that we thought we were on," said Jeremy Bryan portfolio manager at Gradient Investments in Arden Hills, Minnesota. "Is it delayed or is it dead?" Reuters reported.
"We're largely through the earnings season, so political uncertainty is probably going to be the largest source of risk in the next three to six months." Bryan said.
According to a report by CNBC, Andy Brenner, head of international fixed income securities at National Alliance Securities, explained in a note Monday that the Republican agenda is now at risk. "If special prosecutors are hired or there is more talk about obstruction of justice being an impeachable offense, one can kiss the tax plan, health care plan, and fiscal stimulus plan goodbye for 2017," he said.