Stocks Rise, Traders Cheer After News of Bannon's Exit

Posted: Aug 18, 2017 4:00 PM

White House Chief Strategist Steve Bannon’s departure Friday was welcome news on Wall Street, where markets rallied and traders on the floor of the New York Stock Exchange cheered. 

During a CNBC clip discussing the breaking news, loud cheers, clapping, and whistling could be heard.

Stocks also rose, according to MarketWatch.

U.S. stocks rose to session highs Friday following a report that President Donald Trump has told senior aides he has decided to fire strategist Stephen Bannon. The Dow Jones Industrial Average DJIA, -0.22% rose 27 points, or 0.1%, to 21,778. The S&P 500 index SPX, -0.02% gained 8 points, or 0.3%, for 2,438. The Nasdaq Composite Index COMP, +0.11% rose 30 points, or 0.5%, to 6,252.

The Hill explains why the news was welcome for the market:

Bannon’s economic nationalism was often at odds with big business. He was a proponent of protectionist policies, argued for trade wars, and he pushed to reduce immigration, legal and otherwise.

He was also quick to label corporations as “globalist,” in their views, meaning that they supported free trade and immigration, which Bannon viewed as destructive to American workers. (The Hill)

Kadina Group President Gary B. Smith believes investors liked the news because it meant “less volatility.”

“I sense that the market, and I’m looking at volatility in the DOW and S&P, and I think they’re saying, well maybe we have some stability by removing a major thorn in the White House,” he said on Fox Business