Washington politics spilled over into the financial markets Wednesday, as the week’s turmoil — including questions over what President Trump said to former FBI Director James Comey before firing him — has put the administration’s pro-business legislative agenda in question, most notably the president’s proposed tax cuts.
The Dow Jones industrial average fell 372 points, or 1.78 percent. The tech-heavy Nasdaq composite was down 2.57 percent, and the S&P 500 down 1.82 percent.
Congress, it appears, will be tied up in investigations instead of passing legislation, says Aron Szapiro, director of policy research at the investment analysis firm Morningstar.
“All these things take time, and these investigations are going to eat up a lot of it,” he says. (After Szapiro made his comments, a fresh investigation was initiated, with the Justice Department appointing former FBI Director Robert Mueller as a special counsel.)
Szapiro shies away from saying that political turmoil is the main reason investors sought the relative safe havens of gold and bonds today. And, he argues, politics has always…