Will Impeachment Inquiry Effect the Markets?
Political headlines tend to have only fleeting effects on the markets, says Neil Irwin of the Upshot. For example, stocks declined on Tuesday, after Speaker Nancy Pelosi announced the start of an impeachment inquiry, but they rose slightly yesterday.
Stocks are driven more by economic fundamentals, so the way the impeachment will effect the markets is by distracting Mr. Trump from his trade wars and make escalation there less likely or it could go another direction and he could choose to act more provocatively on trade, perhaps as a way of redirecting public attention.
So the answer is that the announcement of the impeachment inquiry itself should not have a negative effect on the market, but what the White House decides to do from here could.