US stocks climbed on reports that White House Chief Strategist Steve Bannon is being replaced.
The S&P 500 rose as much as 0.4% on the news, adding to earlier gains. The benchmark index then pared those gains and traded up 0.1% to 2,432.61 as of 1:56 pm ET. The Dow slid less than 0.1%.
Any lessening of Bannon’s influence is seen as beneficial to stock prices and the corporate earnings that drive them. His anti-global trade agenda was viewed as having the potential to affect the bottom line for some of the US’s biggest companies, which also are the nation’s most active exporters.
The equity rally should provide a sigh of relief for stock bulls following yesterday’s 1.5% decline in the S&P 500, spurred by speculation of another White House departure: Gary Cohn, President Donald Trump’s top economic adviser. Despite the rumors, no reports have provided confirmation.