The day after the blood bath that was the U.S. markets, here’s what I’m looking at…
$1 The Dow and S&P dropped just short of 2% and the Nasdaq fell over 2.5% on news of President Trump releasing classified information to the Russians which was not cleared for release. This may be a devastating blow to the U.S. ability to work with coalition partners.
$2 The political turmoil in D.C. is now untenable. With a special prosecutor now named to investigate this administration’s ties to Russia, signs are pointing towards possible censure or impeachment (or worse) of the President and his associates. This news would certainly shock world markets, which are already reacting.
$3 Markets also gave back earlier gains in oil, showing less faith in the deal struck between Russia and Saudi Arabia to limit oil output. The U.S. continues to ramp up production, which is estimated to grow drastically next year as oil rig counts continue to increase. Prices may stay level after all, to the chagrin of major oil producing nations.
That’s it for now.