The untimely resignation also represents a loss of a key conduit of the financial sector (Goldman Sachs) to the White House. Don't underestimate the impacts of frigid relationship between the White House and global banking community, eventually they will be in crisis together, so a poor relationship will lead to poor decisions.
This is why the equity markets are trading lower, and safe havens like the Japanese Yen are higher. Trends in motion tend to stay in motion until the tape reverses. Still, most investors are too busy chasing the headlines (their tails) to notice or understand tape and/or alignment.
Headline: Gary Cohn’s Departure Set to Rattle U.S. Stocks
Economic adviser Gary Cohn’s resignation from the White House hit global equities and U.S. stock futures while the currencies of America’s trade partners fell Wednesday, as many investors judged the news meant President Donald Trump was pushing forward with planned tariffs.
Futures pointed to a 0.9% opening fall for the S&P 500 and a 1.2% drop for the Dow Jones Industrial Average. Shares of heavy machinery maker Caterpillar fell 2.6% in premarket trading, leading Dow declines on the assumption that trade frictions could increase raw materials costs for industrial giants.
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