BREAKING NEWS District Attorney Mike Ramsey says that Chico State professor Laird Easton has not been charged by his office Full Story

Dow futures tumble after Gary Cohn suddenly quits White House

Gary Cohn's sudden resignation as President Trump's top economic adviser is already rattling Wall Street.Dow f...

Posted: Mar 7, 2018 2:41 AM
Updated: Mar 7, 2018 2:41 AM

Gary Cohn's sudden resignation as President Trump's top economic adviser is already rattling Wall Street.

Dow futures fell more than 300 points on Tuesday evening after Cohn announced plans to step down amid a disagreement with Trump over trade policy. S&P 500 futures slid more than 1%.

The negative reaction underlines how investors have long been reassured by Cohn's presence in the Trump administration. Many believed the former Goldman Sachs president was a moderating voice to Trump's more aggressive views on economic policy, especially trade.

"The market looked at Gary Cohn as being the counterbalance to a pure strain of nationalism on tariffs and trade," said Peter Kenny, chief global market strategist at Global Markets Advisory Group.

Cohn's exit from the White House also signals he may have lost a bruising fight with rivals inside the administration on tariffs. Cohn had been trying to soften Trump's plan to impose tariffs on aluminum and steel that some Republicans and business executives fear could spark a trade war.

Related: Trump's tariffs could ricochet in coal country

Trump's tariff announcement last week spooked Wall Street, which began to worry about a potential trade war. The markets bounced back on Monday, when investors thought that House Speaker Paul Ryan and others would succeed in softening Trump's stance on tariffs.

"This trade issue really strikes fear into the market because it's an unknown," said Kenny. "It's a variable markets will have difficulty pricing in."

Major stock indexes in Asia reacted less severely than their US counterparts. After swinging between small gains and losses Wednesday morning, Japan's Nikkei and Hong Kong's Hang Seng were both down about 0.9% in early afternoon trading.

In his statement on Tuesday, Cohn said it's been an "honor to serve my country and enact pro-growth economic policies to benefit the American people."

Lloyd Blankfein, the CEO of Goldman Sachs, sent out a tweet on Tuesday crediting Cohn for his service and saying he is "disappointed to see him leave."

-- Jethro Mullen contributed to this report.

California Coronavirus Cases

Data is updated nightly.

Cases: 3168528

Reported Deaths: 37121
CountyCasesDeaths
Los Angeles107315615262
San Bernardino2644571667
Riverside2585322777
San Diego2271952375
Orange2232882638
Santa Clara980571234
Kern90213590
Fresno852741043
Sacramento834081157
Alameda70334894
Ventura65581507
San Joaquin59395808
Contra Costa54951489
Stanislaus44184788
Tulare42759531
Monterey37285259
San Mateo33731340
San Francisco30308293
Santa Barbara26820265
Solano26494111
Imperial25581493
Merced25048324
Sonoma24935247
Kings19904160
Placer17675188
San Luis Obispo16652151
Madera13858151
Santa Cruz12771130
Marin11954163
Yolo11087138
Shasta9951129
Butte9757134
El Dorado800259
Sutter794383
Napa789347
Lassen526916
San Benito516648
Yuba504929
Tehama446846
Tuolumne344340
Nevada333274
Mendocino327736
Amador304932
Lake267332
Humboldt249425
Glenn201522
Colusa18549
Calaveras169523
Siskiyou148413
Mono11354
Inyo100729
Del Norte8732
Plumas6055
Modoc3903
Mariposa3514
Trinity3054
Sierra880
Alpine730
Unassigned00
Chico
Cloudy
41° wxIcon
Hi: 53° Lo: 33°
Feels Like: 33°
Oroville
Cloudy
44° wxIcon
Hi: 52° Lo: 41°
Feels Like: 41°
Chico
Cloudy
41° wxIcon
Hi: 46° Lo: 35°
Feels Like: 33°
Red Bluff
Cloudy
41° wxIcon
Hi: 28° Lo: 14°
Feels Like: 36°
Red Bluff
Partly Cloudy
41° wxIcon
Hi: 54° Lo: 32°
Feels Like: 36°
Chico
Mostly Cloudy
41° wxIcon
Hi: 57° Lo: 33°
Feels Like: 33°
Several inches of rain along with multiple feet of snow will fall Tuesday through Friday with the biggest winter storm so far this season. A widespread hard freeze will be seen in the valley Monday night.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events