US stocks fell and bonds gained Thursday afternoon, following a report from the Wall Street Journal that Special Counsel Robert Mueller has impaneled a grand jury to investigate Russia’s interference in the 2016 elections.
The grand jury allows prosecutors to subpoena documents, put witnesses under oath, and seek indictments, if evidence of a crime is found.
“This is yet a further sign that there is a long-term, large-scale series of prosecutions being contemplated and being pursued by the special counsel,” Stephen I. Vladeck, a law professor at the University of Texas was quoted by the WSJ as saying. “If there was already a grand jury in Alexandria looking at Flynn, there would be no need to reinvent the wheel for the same guy. This suggests that the investigation is bigger and wider than Flynn, perhaps substantially so.”
Reuters reported later Thursday that grand jury subpoenas have been issued in connection with a June 2016 meeting between Donald Trump Jr and a Russian lawyer, citing two sources familiar with the matter.
The US stock market has so far weathered the political headlines coming out of Washington. We will see how long that continues to be the case.