Investing.com – U.S. stocks closed lower on Friday, as U.S. political uncertainty continued unabated, after White house chief strategist Steven Bannon resigned.
"White House Chief of Staff John Kelly and Steve Bannon have mutually agreed today would be Steve's last day. We are grateful for his service and wish him the best," White House press secretary Sarah Huckabee Sanders said in a statement.
U.S. stocks moved higher on news of Bannon’s resignation, but gains were short lived as safe demand increased, after investors questioned whether the recent controversies engulfing President Trump would impair his ability to push through pro-growth economic reforms.
Some analysts, however, were quick to downplay the long-term impact of the recent shakeup in the Trump administration.
“The news of the day around the White House has no long term impact,” said Paul Nolte, portfolio manager at Kingsview Asset management, in an interview.
The political upheaval in Washington overshadowed data showing U.S. consumer sentiment topped forecasts in August.
The consumer sentiment index, a survey of consumers by The University of Michigan, rose to 97.6 in August. Economists estimated the index would climb to 94 from the 93.4 reading in July.
U.S. stocks posted a negative end to a busy week, which included the release of the minutes from the Federal Reserve’s July meeting, showing fed members were divided on future interest rate increases, citing concerns over slow inflation.
The Dow Jones Industrial Average closed lower at 21,674. The S&P 500 closed 0.18% lower while the Nasdaq Composite closed at 6216.53, down 0.09%.
‘Bulls and Bears’ on Wall Street
The top Dow gainers for the session: Caterpillar Inc (NYSE:CAT) up 0.7%, Chevron Corporation (NYSE:CVX) up 0.5% and Exxon Mobil Corporation (NYSE:XOM) up 0.5%
Nike Inc (NYSE:NKE) down 4.4%, Cisco Systems Inc (NASDAQ:CSCO) down 2.2% and Home Depot Inc (NYSE:HD) down 1.5%, were among the worst Dow performers of the session.