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Bank Stocks Take Hit As Trump Turmoil Continues

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Big U.S. bank stocks dipped on Wednesday morning amid new concerns out of Washington D.C. regarding President Donald Trump and his administration.

Yesterday, news began to circulate, starting with a New York Times report claiming that former FBI Director James Comey compiled a memo and outlined conversations he had with Trump alleging that the president requested that Comey and the FBI stop their investigation into former national security adviser Michael Flynn. On top of Comey news, Trump shared potentially compromising intelligence with Russian officials last week.

President Trump defended on Tuesday his decision to share Israeli-gathered intelligence with Russian officials in the Oval Office.

These two recent damaging developments, along with a string of other concerns swirling around D.C. regarding Trump and his administration, have given rise to the possibility that his agenda will be stifled at every turn, and not just by Democrats.

Bank stocks fell on Wednesday morning amid fears that Trump’s pro-business, tax reform agenda could collapse. Trump’s plan to cut banking regulations, many of which were put in place after the 2008 financial crisis, fall into this same reform basket.

Shares of the so-called big four U.S. banks all took a slight dive. Bank of America (BAC - Free Report) dropped by 4.25%, while Citigroup (C - Free Report) fell by 3.03% in morning trading. JPMorgan Chase (JPM - Free Report) and Wells Fargo (WFC - Free Report) were also down marginally.

The benchmark Financial Select Sector SPDR Fund (XLF - Free Report) is down 2.39%, with banking ETF’s KBE Quick QuoteKBE - Free Report) %20">(KBE - Free Report) and KRE Quick QuoteKRE - Free Report) %20">(KRE - Free Report) both falling by over 3%. Since the November election, XLF had been up substantially, but it’s dipped since early March. 

Financial giants Goldman Sachs (GS - Free Report) and Morgan Stanley (MS - Free Report) dropped by over 4% in morning trading. The Dow Jones Industrial Average fell by 1% directly following the opening bell. The S&P 500 is also down nearly 1%.

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