NEW YORK (FOX 5 NEWS) - The market isn't panicking yet. But the Dow and the Nasdaq did take a hit Wednesday because Wall Street is now concerned that proposals from the president, such as tax cuts, won't happen because he is mired in controversy.
The Dow closed down 372 points. The Nasdaq tumbled 158. It is the first time the Dow has closed down more than 300 points since last September. Experts say the major sell-off was Wall Street reacting to the news that in February President Trump allegedly asked then-FBI Director James Comey if the FBI would shut down its investigation of ex-national security adviser Michael Flynn.
Crain's New York Business reporter Aaron Elstein says investors are now nervous this controversy could prevent the president from accomplishing any of his agenda, which was meant to create jobs and boost the economy. Elstein says you'll notice your 401k probably took a dip but unless you need to cash out now you shouldn't worry. He says watch, wait and ride it out.
Until now the market has not been negatively affected by president trump. In fact, it's been just the opposite. So, even though the Dow was down 372 points Wednesday it still closed above 20,000.
Elstein says that about a 2-percent drop will get your attention, but is not a big deal in the grand scheme of things.
Even with the sell-off, the Dow is still up 779 points since trump was sworn into office.