Stocks tumble as political and trade tensions unnerve traders

Reuters


Stocks slid on Thursday as investors digested rising political in Washington, D.C. and mounting uncertainty in the US-China trade war.

Acting director of national intelligence Joesph Maguire testified in front of Congress on Thursday morning to answer questions regarding a whistleblower complaint against President Trump. The whistleblower’s complaint said Trump pressured Ukrainian President Ukrainian President Volodymyr Zelensky to investigate former Vice President Joe Biden prior to the 2020 election.

The director’s testimony further clouded Trump’s political future as calls for his impeachment grow, which led to a sell-off in stocks earlier this week.

The market’s losses worsened after Bloomberg reported the US is unlikely to extend a temporary waiver that allows US companies to do business with Chinese telecommunications giant Huawei. The company has often been viewed as a bargaining chip in trade negotiations between the US and China.

Here’s a look at the major indexes as of the 4 p.m. close on Thursday:

Peloton’s stock opened 6.9% below its initial public offering price of $US29 on Thursday, marking the third-worst debut for a mega-IPO since the financial crisis. The company sold 40 million shares at $US29 a piece, bringing in about $US1.2 billion in new funding for the connected-fitness equipment maker.

Pot stocks climbed on Thursday morning after the US House of Representatives passed the Secure and Fair Enforcement Act, a bill designed to protect banks working with cannabis companies. Most major cannabis stocks erased gains after the initial surge.

Read more: JPMORGAN: The threat of Trump’s impeachment will change how investors play defence. Here’s how to keep yourself safe as uncertainty swirls.

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