US stocks climbed on reports that White House chief strategist Steve Bannon is being replaced.
The S&P 500 rose as much as 0.4% on the news, adding to earlier gains. The benchmark index was up 0.35% to 2,438.28 as of 12:49 am ET.
Any lessening of Bannon’s influence is seen as beneficial to stock prices and the corporate earnings that drive them. His anti-global trade agenda was viewed as having the potential to affect the bottom line for some of the US’s biggest companies, which also are the nation’s most active exporters.
The equity rally should provide a sigh of relief for stock bulls following yesterday’s 1.5% decline in the S&P 500, spurred by speculation of another White House departure: Gary Cohn, President Donald Trump’s top economic adviser. Despite the rumours, no reports have provided confirmation.
According to a tweet from CNBC markets produder Kirsten Chang, Bannon’s ouster was met with cheer by traders.
Traders on the NYSE floor cheering after NYT reports Bannon’s departure from Trump’s executive office
— Kirsten Chang (@kirstenchang16) August 18, 2017
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