Traders at the New York Stock Exchange roared and markets rose shortly after the news broke Friday that Stephen Bannon was leaving his post as President Trump’s top strategic adviser.
Traders working at the exchange shouted loudly as the headline of Bannon’s departure appeared, and was clearly audible over cable news broadcasts.
NYSE cheers news of Bannon’s departure from CNBC. Shortly thereafter, the S&P 500 ticked up several points, a lift that several commentators attributed to Bannon leaving. A proponent of populist, nationalist economics, Bannon favored several policies that would have run counter to Wall Street orthodoxy, such as trade protectionism, immigration restriction, and higher taxes on high income earners.
However, a few hours after Bannon’s departure was announced, the Dow Jones Industrial average had fallen back into negative territory, and the NASDAQ was barely positive.
Speaking on CNBC shortly after the announcement that Bannon would leave, FBR Capital Markets analyst Edward Mills suggested that Bannon’s ouster could help break the legislative logjam and improve the odds that tax reform, among other GOP priorities, could pass.
“His economic agenda was out of sync with the mainstay Republican senator, so that was a hurdle that was being removed also with his departure,” Mills said.
Just days before, Bannon had raised the possibility of “economic war” with China in an unexpected and bombastic interview with the left-of-center publication the American Prospect.
