New York Democratic Rep. Alexandria Ocasio-Cortez and Florida Republican Rep. Matt Gaetz have joined forces to introduce a bill banning lawmakers, their spouses, or dependents from trading stocks.
House Problem Solvers Caucus co-chair Rep. Brian Fitzpatrick, R-Penn., and Democratic Illinois Rep. Raja Krishnamoorthi joined the pair in introducing the Bipartisan Restoring Faith in Government Act on Tuesday.
Stocks slid significantly Wednesday, with the Dow Jones Industrial Average plummeting nearly 650 points, as key midterm races were still being counted and cryptocurrency market fears shook investors out of a three-day rally, The Wall Street Journal reported Wednesday.
All three major indices fell, with the Dow falling 2%, the S&P 500 dropping 2.1% and the tech-heavy Nasdaq Composite Index plunging 2.5% by the end of the business day, the WSJ reported. Investors anticipated that the U.S. government would be gridlocked by Republicans gaining control of at least one branch of Congress, a status typically considered good for business, and though Republicans are still expected to gain control of the House of Representatives, their control is not expected to be as commanding as predicted.
U.S. stocks took big losses Friday with major markets showing record declines – including the Nasdaq Composite having its worst month since 2008.
Tesla CEO Elon Musk, who has questioned Twitter’s commitment to free speech, has taken a 9% stake in the social media platform, making him its largest shareholder.
Musk bought 73.5 million shares worth $2.9 billion, based on the closing price Friday, the Associated Press reported Monday.
However, what Musk intends to do as a result of the purchase remains unclear.
Democrats are weighing whether to extend an individual stock trading ban to spouses of lawmakers.
The Ban Conflicted Trading Act “prohibits a Member of Congress or certain congressional officers or employees from (1) purchasing or selling specified investments, (2) entering into a transaction that creates a net short position in a security, or (3) serving as an officer or member of any board of any for-profit entity.”
The legislation in its current form would not apply to the spouses of lawmakers. House Speaker Nancy Pelosi’s husband Paul has made headlines over the years with his millions of dollars in stock purchases, particularly with technology companies.
The cryptocurrency market lost nearly $130 billion in value over the last 24 hours as major digital coins continue their extended sell-off, multiple sources reported.
Bitcoin dropped 4.81% to $33,693.63 over the last 24 hours while Ethereum slid 9.41% to $2,206.22, according to Coinbase. Both assets fell to their lowest level since July 2021, and each has lost roughly 50% of its highest value.
Cryptocurrencies have trended similarly to stocks, which have seen a sell-off since the start of 2022. Investors have dumped their assets, especially technology stocks, in preparation for tighter monetary policies from the Federal Reserve, including interest rate hikes and halting of the central bank’s asset purchasing stimulus program.
U.S. stocks shed more than 500 points as the markets opened Monday morning as emerging risks continue to become the September story for Wall Street.
The Dow Jones Industrial average fell 570 points – its biggest single day drop since mid-July. The S&P 500 lost 1.4%, while the tech-oriented Nasdaq Composite dropped 1.6%.
The sell-off comes as a the result of a number of investor concerns. On Tuesday, the Federal Reserve will begin a two-day meeting, which investors are worried will result in a decision that will pull stimulus funds as inflation continues to surge.