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Wall St tumbles as turmoil in Washington spooks investors

Thursday, May 18, 2017 - 01:17

U.S. stocks plunged as reports of a memo by former FBI chief James Comey suggested that President Donald Trump tried to interfere with a federal investigation. Fred Katayama reports.

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U.S. stocks plunged after reports of a memo by former FBI chief James Comey suggested that President Donald Trump tried to interfere with a federal investigation. The reports said Trump asked Comey to end a probe into former National Security Adviser Michael Flynn's ties with Russia. That came after Trump unexpectedly fired Comey and then disclosed classified information to Russia about a planned Islamic State operation. U.S. Bank investment group head Lisa Kopp says managing all this news is going to be a headache for Trump and his team. (SOUNDBITE) LISA KOPP, SVP AND HEAD, TRADITIONAL INVESTMENTS GROUP, U.S. BANK WEALTH MANAGEMENT (English) SAYING: "That will hamper potentially moving forward with his agenda in two ways. So, one is obviously the amount of time that he is having to spend on these additional issues, and longer-term it could potentially reduce, obviously, his bargaining and negotiating power." The volatility index VIX surged on the news from Washington. And the dollar index erased all of the gains since Trump's election victory in November. Bank stocks were the worst hit, with Bank of America, JPMorgan, and Goldman Sachs leading the losses. On the flip side, Target was up after reporting a smaller-than-expected drop in quarterly comparable sales. Political turmoil in the U.S. dragged Europen stocks down as well.

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Wall St tumbles as turmoil in Washington spooks investors

Thursday, May 18, 2017 - 01:17