Stocks fall as Democrats turn up heat on Trump
Stocks dropped on Wall Street Tuesday as House Democrats met to consider a potential impeachment probe of President Donald Trump and a report showed a drop in consumer confidence.
After a higher open, stocks declined as the Conference Board, a business research group, reported its consumer confidence index fell to 125.1 in September from a revised reading of 134.2 in August. That's worrisome because consumer spending has underpinned the economy during a slowdown in manufacturing.
The declines intensified after reports said a growing number of Democrats were in favor of launching an impeachment inquiry against the president and House Democrats were meeting to consider the possibility. Stocks recovered somewhat after Trump said he plans to release the full transcript of a July phone call with Ukraine's president that is at the center of the impeachment discussions.
It was the market's most volatile day this month. The Dow Jones Industrial Average swung from a gain of 130 points to a loss of around 245 points as investors' attention swung between headlines on economics and politics. The index finished with a loss of 142 points.
"News of increased likelihood of impeachment proceedings has just added to this overall level of uncertainty that's out there right now," said Willie Delwiche, investment strategist at Baird.
The swings in stocks Tuesday disrupted the relative calm that has distinguished the market in September. Traders sought safety — they piled into bonds, sending yields sharply lower. They also bid up utilities and household goods makers. All other sectors declined.
The S&P 500 index fell 25.18 points, or 0.8%, to 2,966.60. The benchmark index remains within 2% of its all-time high set in late July.
The Dow slid 142.22 points, or 0.5%, to 26,807.77. The...