Stocks
in the United States were down sharply in midday trading. The Dow Jones
industrial average, the Nasdaq and the Standard & Poor’s 500-stock
index each were down more than one percent.
Among the reasons for the sudden skittishness:
•
Continued turmoil in Washington. New revelations about President
Trump’s sharing of sensitive information with Russian diplomats, and his
reported suggestion that former F.B.I. director James B. Comey drop his investigation
into former national security adviser Michael T. Flynn are raising
fears that Mr. Trump’s agenda of lower taxes and lighter regulation
could be harder to enact.
•
Underlying weakness in the economy. While strong tech stocks have been
inflating the major indexes in recent months, some key companies for the
American economy — especially retailers and carmakers — are facing real
struggles.
The dollar was weaker against other major currencies on Wednesday.
And Wall Street’s fear gauge is up. After hitting historic lows,
the Chicago Board Options Exchange volatility index, or VIX, spiked 20
percent in early trading on Wednesday, although the index remains well
below its historical average.
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