Markets Shrug Off Trump Impeachment Article as Investors Focus on Middle East De-escalation
U.S. markets opened calmly on Tuesday, largely ignoring the impeachment article filed against former President Donald TRUMP by Representative Al Green. Investors appeared more focused on signs of easing tensions in the Middle East, with Trump-linked assets posting gains. The Dow Jones rose 309 points (0.7%), while the S&P 500 and Nasdaq gained 0.7% and 1%, respectively. Oil prices fell for a second consecutive day, with U.S. crude dropping over 5%. The market's muted reaction mirrors the response to Trump's first impeachment in 2019, suggesting investors see little immediate political risk.
How Did Markets React to the Trump Impeachment Article?
U.S. financial markets showed minimal reaction to the impeachment article against Donald Trump filed by Texas Democrat Al Green. The Dow Jones Industrial Average climbed 309 points (0.7%), the S&P 500 gained 0.7%, and the Nasdaq Composite ROSE 1% in Tuesday's trading session. Trump-linked assets performed particularly well, with Trump Media & Technology Group Corp shares up 2% and two pro-Trump meme tokens ("Official Trump" and "Melania") rising 5% over 24 hours. This muted response suggests investors don't view the impeachment effort as a serious threat to Trump's political standing or to market stability.
Why Are Investors Focusing on Middle East Developments?
Market participants appeared more concerned with geopolitical developments than domestic politics. Oil prices fell sharply for a second consecutive day, with U.S. crude dropping over 5% on Tuesday following a 7% decline Monday. Brent crude fell more than 4% in the same period. The declines came after Trump called for a ceasefire between Iran and Israel over the weekend. "Investors are practically ignoring what's happening in Congress," said Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors. "They're concerned about the economy, earnings, and trade. If they thought the President was in serious danger of losing his job, they WOULD care."
How Does This Compare to Trump's 2019 Impeachment?
The market's calm reaction mirrors the response to Trump's first impeachment in 2019, when the House charged him with abuse of power and obstruction of Congress. Although the S&P 500 fell 1% when impeachment hearings were announced in September 2019, markets recovered and finished the year strongly. Consumer confidence remained stable throughout the proceedings. "Impeachment headlines may be compelling and anxiety-inducing, but there hasn't been a discernible impact on consumer spending or sentiment," noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
What Does the Impeachment Article Accuse Trump Of?
Representative Al Green's resolution accuses Trump of violating war powers by authorizing U.S. airstrikes on three Iranian nuclear facilities without congressional approval. The article claims Trump abused his authority by ordering military action without notifying legislators, violating Article I of the Constitution which grants Congress sole power to declare war. "The use of force without congressional authorization or notice constitutes abuse of power when there was no imminent threat to the United States," states the resolution. Green called Trump's actions "authoritarian conduct" and criticized him for "turning American democracy into authoritarianism."
What Other Examples of Abuse Does Green Cite?
In addition to the airstrikes, Green's resolution references the January 6, 2021 Capitol riot, Trump's immigration agenda, and repeated attacks on federal judges as examples of ongoing power abuses. "No President has the right to drag this nation into war without authorization from the people's representatives," Green said at a Tuesday press conference. "President Trump's actions constitute a de facto declaration of war." Green has been one of Trump's most vocal congressional critics, having introduced several impeachment articles during Trump's first term and being censured earlier this year for disrupting a joint session of Congress.
Will This Impeachment Effort Gain Traction?
Political analysts suggest the impeachment effort is unlikely to succeed, given Republican control of the House and the lack of bipartisan support. The market reaction indicates investors share this assessment. Green acknowledged the challenges but vowed to continue holding Trump accountable: "I didn't come to Congress to be a spectator while a President abuses power," he concluded. The consensus view appears to be that Trump won't be removed from office, meaning policies are unlikely to change significantly.
Frequently Asked Questions
How did financial markets react to the Trump impeachment article?
Markets showed minimal reaction, with major indices posting gains and Trump-linked assets rising. The Dow gained 309 points (0.7%), while Trump Media & Technology Group shares rose 2%.
Why did oil prices fall despite the impeachment news?
Oil prices dropped due to Trump's call for a Middle East ceasefire, with U.S. crude falling over 5% Tuesday after a 7% decline Monday, suggesting investors prioritized geopolitical developments over domestic politics.
How does this compare to Trump's 2019 impeachment?
The market reaction has been similarly muted. In 2019, after an initial 1% S&P 500 drop when hearings were announced, markets recovered and finished the year strongly.
What specifically does the impeachment article accuse Trump of?
It accuses Trump of violating constitutional war powers by authorizing airstrikes on Iranian nuclear facilities without congressional approval, calling this an abuse of power.
Has consumer confidence been affected by impeachment proceedings?
Historical data suggests no significant impact. During the 2019 impeachment, consumer confidence remained stable despite dramatic headlines.
