U.S. Stock Markets React to Steve Bannon’s Ouster with Highs and Lows — Just Like His Time in the White House

Controversial White House chief strategist Steve Bannon is out, and U.S. financial markets rallied on the news before ending lower on Friday.

All major U.S. stock market indexes closed slightly lower on Friday, paring wider losses in the U.S. and Europe after a terrorist attack in Barcelona added to market anxiety over the political turmoil in America. Stock markets also saw weekly losses against the backdrop of rising tensions in Asia over a standoff with North Korea.

The removal of Bannon, whose nationalist views had made him a lightning rod for criticism — both within and outside the White House — may provide some temporary relief following the ripple effects from the violence in Charlottesville, Va., last week, when deadly riots broke out between a group of white supremacists and protesters. President Trump’s refusal to unequivocally disavow the group of Nazi sympathizers and white supremacists has caused a deterioration of support from corporate America, the military and segments of his own Republican party.

News of Bannon’s departure came after a week of speculation following the violent riots in Charlottesville, which led to the disbanding of two White House business councils made up of prominent CEOs and key corporate allies of the president.

The White House issued the following statement Friday: "White House Chief of Staff John Kelly and Steve Bannon have mutually agreed today would be Steve's last day. We are grateful for his service and wish him the best."

·  The S&P 500 Index dropped 0.18 percent in New York, after falling as much as 0.40 percent earlier

·     The Dow Jones Industrial Average fell 0.35 percent

·     The Nasdaq Composite Index was little changed, down 0.09 percent

Market speculation naturally turned to who may be next out the door. The White House shot down rumors that National Economic Council Director Gary Cohn was going to resign after Trump reiterated remarks that “both sides” were equally to blame for the deadly riots in Charlottesville.

Several media outlets reported earlier that the former Goldman Sachs chief operating officer considered resigning. The Washington Post reported on Thursday that Cohn was mortified by Trump’s comments and was being pressured by friends asking him to leave the White House.

After the market close on Friday, billionaire investor Carl Icahn said that he was stepping down from his advisory role to the president, who gave his blessing. Icahn said was stepping down "because I did not want partisan bickering about my role to in any way cloud your administration or Ms. Rao's important work," referring to the recent appointment of Neomi Rao as Administrator of the Office of Information and Regulatory Affairs.

What do you think? Will Bannon’s ouster mean that NEC Director Cohn will have growing influence over economic policy that will boost markets? Or will Cohn and others be on the list of more departures to come? Share your thoughts on #BannonOut