Weekly Market Commentary 05/12/2017

The financial markets generally shrugged off the latest installment of Washington high jinks, highlighted by the president’s abrupt dismissal of FBI chief Comey. Despite the wave of partisan recriminations in Congress, a wide range of interpretations in the media and a general sense of befuddlement among the public, investors and traders viewed the development with aplomb. Stock prices barely moved, volatility remained calm, and market interest rates exhibited imperceptible changes. Given the chaotic rollout of the new administration’s first 100 days, it may be that market participants have become somewhat inured to unexpected developments inside the Beltway.