Global stocks tumble as Gary Cohn's White House exit kicks trade war fears into overdrive
- Global stocks dropped Wednesday as investors digested the news of Gary Cohn's White House departure.
- Cohn's exit reignited fears of a global trade war as traders worry other nations may retaliate against US measures.
- The former Goldman Sachs executive is a proponent of free trade, and butted heads with President Donald Trump in his final days over recently announced tariffs.
Stocks around the world were sharply lower Wednesday after Gary Cohn's exit from the White House spurred fears of a global trade war.
The departure of Cohn - who was Trump's top economic adviser, a former Goldman Sachs executive, and a champion of free trade - comes at a time when the president is seeking more protectionist measures. Investors are worried the actions will prompt retaliation from other countries and wind up costing the US economy hundreds of thousands of jobs.
Last week, Trump announced sweeping tariffs on steel and aluminum, and pushed forward in recent days despite protestations from Cohen. There has also been speculation the Trump administration may be close to clamping down on Chinese investments in the US and imposing tariffs there as well.
The damage in global equities was deep and broad. Here's a round-up of major indexes:
- S&P 500 futures: -0.65%
- Dow Jones industrial average futures: -0.93%
- Nasdaq 100 futures: -0.57%
- Stoxx Europe 600: -0.06% (down as much as 0.59%)
- Nikkei 225: -0.77%
- Hang Seng: -1.03%
- Shanghai Composite: -0.55%
Elsewhere in markets, the US 10-year Treasury yield declined less than 1 basis point to 2.88%, while the US dollar index lost 0.1%. Crude oil fell 0.5%, and gold dropped 0.2%.
