Trump impeachment didn't affect stock market despite US President's warning

Equity markets defied US President Donald Trump’s warning that his impeachment will negatively impact the stocks and a possible market crash. S&P 500 grew nearly 7 per cent since House of Representatives Speaker Nancy Pelosi first announced the impeachment inquiry in September.

Investors ignore drama

Trump repeatedly warned that impeachment vote would lead to dip in the stock market saying, “If they actually did this the markets would crash. Do you think it was luck that got us to be the best Stock Market and Economy in our history. It wasn’t.” But investors have apparently ignored the controversy and experts believe that the market will grow even stronger next year. S&P 500 has gained 5.5% since October end and the Dow has climbed by about 4.9% over the same period. The current state of the stock market resembles the event surrounding former President Bill Clinton’s impeachment when shares continued to soar.

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The high-profile controversy started when Democrats accused Trump of pressurising Ukranian President Volodymyr Zelenskiy to investigate Joe Biden, a Democrat and Trump’s potential challenger for 2020 presidential elections. On December 18, the Democrat-controlled House of Representatives voted in favour of the first impeachment article, alleging misuse of power, 230 to 197. The second article, accusing Trump of obstructing Congress, was voted by the house in favour 299 to 198. Since the majority of members of the House of Representatives voted in favour of impeachment, Trump stands impeached but the proceedings will now move to Senate.

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The Senate, controlled by Republicans, will now hold a trial under the supervision of Chief Justice of the Supreme Court. In the trial, Senate will serve as the jury and at least two-thirds of the Senate have to vote in favour of removal. In the history of the United States, only two presidents, Andrew Johnson in 1868 and Bill Clinton in 1998, were impeached before the impeachment of Trump, but both got acquitted in the Senate. In 1974, the then President Richard Nixon had faced impeachment proceedings but resigned from the office before any voting could take place.

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