Trouble in paradise made its way to the stock market as the Dow and S&P dropped Wednesday.
The Dow Jones Industrial average dropped about 250 points after opening Wednesday morning, and the S&P 500 Index dropped more than 26 points.
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(Source: Yahoo Finance, MSN Money)
Among the companies that dropped, JPMorgan fell 1.7% while Goldman Sachs saw a drop of 2%.
The sudden sell-off comes after former FBI Director James Comey released a memo saying President Donald Trump asked him to stop investigating former National Security Advisor Michael Flynn.
The story, first released Tuesday by Michael Schmidt from The New York Times, comes after Trump was accused of releasing highly classified information to Russia during his meeting with the Russian ambassador.
The White House denies both claims, but that hasn’t stopped the market from reacting.
And Brad Blackwell, Wells Fargo executive vice president of housing policy and homeownership growth strategies, explains this sell off will also effect mortgage rates.
The turmoil in Washington is finally affecting markets. Stocks down, bonds rally. Watch for lower #mortgage rates today as a result.
— Brad Blackwell (@loansbrad) May 17, 2017
The 10-year Treasury fell 2.24% Wednesday, a strong indicator that mortgage rates will also fall, as they typically follow they 10-year.
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(Source: CNBC)
Over the past several weeks interest rates held steady near the 4% market, and last week the 10-year Treasury increased eight basis points, sending interest rates up slightly. Now, however, those gains could be reversed.
