Post-election market leaders fell the most Wednesday as traders worried that the Trump administration might not be able to fulfill its pro-growth promises.
"Putting these initiatives off ... that's not so much a problem as the possibility they'll [not] even happen," said Ben Pace, chief investment officer at HPM Partners.
The worry is that the latest political flare-up could lead to President Donald Trump's impeachment. Late Tuesday, news broke that Trump allegedly asked recently fired FBI Director James Comey to "let go" of the investigation into former national security advisor Michael Flynn. NBC News confirmed the report with multiple sources with first-hand knowledge of a memo written by Comey.
Stocks fell broadly Wednesday, with financials, technology and industrials leading declines in the S&P 500.
Financial stocks had mostly led post-election market gains as the industry was set to benefit the most from corporate tax cuts, deregulation and a rise in interest rates.
"It stands that the sectors that psychologically benefited most form the Trump administration would be the ones hit today," Pace said.