For the first time in months, Wall Street is under serious pressure. The Dow Jones Industrial Average has dropped below its 50-day moving average, the CBOE Volatility Index has surged above its 200-day moving average, safe-haven assets like gold and Treasury bonds are well-bid, and bank stocks are taking a clobbering.
All this is being driven by rising fears about the future of the Trump administration amid a cavalcade of negative headlines. At the top are the alleged leaking of intelligence material to Russian officials, as well as supposed pressure on former FBI Director James Comey to drop an investigation into resigned national security adviser Michael Flynn on ties to Russia and Turkey.
President Donald Trump’s critics are claiming this could involve an impeachable offense. That remains to be seen. However, the situation is further poisoning the well on any hopes of bipartisan cooperation on pro-growth initiatives like healthcare reform and tax cuts — initiatives that drove the epic post-election rally in stocks.
Fears over a drag on the economy are also having a very specific effect: pushing back Federal Reserve interest rate hike odds. In turn, big bank stocks are getting hit hard.
Here are seven such stocks that are getting slammed, and a look at how much more downside these financial companies could have.