U.S. stocks tumble 1% on Trump turmoil, oil spikes after inventory draw

With no major economic news on the docket, Wall Street slumped 1% as worries over political developments in the U.S. dominated market headlines, but oil jumped as investors celebrated a draw in U.S. crude inventories.

At 11:39AM ET (15:39GMT), the Dow Jones tumbled 249 points, or 1.19%, the S&P 500lost 27 points, or 1.11%, while the Nasdaq Composite traded down 102 points, or 1.65%.

The news came one day after a report accused Trump of disclosing sensitive intelligence obtained from a close U.S. ally with Russia’s foreign minister about an Islamic State operation.

The reports added to concerns that the President will be unable to successfully push through his economic stimulus program in the face of mounting controversies.

In fact, U.S. stocks hit session lows as Justin Amash became the first Republican party member to suggest that if the allegations surrounding the James Comey memos are true, they would be grounds for impeachment.

The news also sparked a rally in safe haven, such as the yen, Swiss franc, gold and U.S. Treasuries, which are often used as a hedge in times of political uncertainty.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for a sixth straight day as investors appeared to lose faith amid the political turmoil on Capitol Hill.

With tempers flaring in Washington, markets also appeared to see lower chances that Trump fiscal policies would back the Federal Reserve’s (Fed) intentions to move forward with the removal of accommodative monetary policy.

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