Stocks fell after Trump unexpectedly fired Secretary of State Rex Tillerson Tuesday morning.
The Dow Jones industrial average dropped nearly 200 points Tuesday, ending the day at 25,007, as Wall Street processed a surprise change of the US’ top diplomat and President Donald Trump’s blocking of Broadcom’s proposed takeover of a US competitor.
The S&P 500 ended the day down 0.64% while the Nasdaq 100 lost 1.22%.
The White House issued a highly unusual executive order blocking Broadcom’s $117 billion offer to buy competing chipmaker Qualcomm on the grounds of national security. Shares declined 5% Tuesday alongside other tech names like Microsoft.
Trump unexpectedly ousted Secretary of State Rex Tillerson, announcing the change in an early morning tweet, and replaced him with CIA Director Mike Pompeo in a highly unusual shakeup that appears to have left investors confused about the state of the West Wing.
GE took a major hit, ending the day the worst performer of all Dow components, after JPMorgan cut its price target for the industrial giant. US Steel slid more than 7% despite raising its guidance due to Trump’s new tariffs on imported steel and aluminum.
Earlier in the day, stocks seemed to largely shrugs off an inflation reading that was up over last month, but in line with Wall Street expectations. Consumer prices rose 2.2% versus a year ago.
Crude oil slumped by 1.2%, to $60.62 a barrel, while the yield on 10-year Treasury note fell 3 basis points to 2.87%.