Peace proved fleeting in markets as investors fretted Gary Cohn leaving the Trump administration prunes it of a key source of stability just as signs of a trade war are multiplying.
“Of all the Trump administration resignations, this will be the one most meaningful for markets,” said Michael O’Rourke, chief market strategist at JonesTrading Institutional Services. “Cohn was the administration official financial markets had the most confidence in. This opens the environment up to whole new wave of uncertainty. The likelihood of a trade war just jumped dramatically.”