An exchange-traded fund measuring the broad U.S. stock market fell in extended trading Tuesday after news that White House chief economic advisor Gary Cohn is resigning.
Cohn, former Goldman Sachs president and COO, was seen as supporting more business-friendly policies.
The SPDR S&P 500 ETF Trust (SPY) fell more than 1 percent in after-hours trading Tuesday.
“I think this is definitely a bigger deal than some of the other departures, due to Cohn’s reputation as proponent of Wall Street, said Dan Deming, managing director at KKM Financial. “Short-term I believe it would increase concerns of an increased probability of a trade war escalating.”
However, he and other analysts noted that it was too early to determine whether there will be lasting damage to market psychology.
The U.S. dollar index extended losses, trading 0.6 percent lower near 89.52.
U.S. stocks closed higher Tuesday, recovering from earlier concerns about a possible trade war.
The major averages traded lower earlier in Tuesday’s session after Bloomberg News reported citing sources that President Donald Trump was convinced Cohn would leave the administration if the tariffs proposed by the president were implemented.
On Thursday, Trump announced the U.S. would impose 25 percent tariffs on steel imports and 10 percent on aluminum imports, which could take effect as early as this week.
— CNBC’s Fred Imbert contributed to this report.
