Swalwell sexual assault allegations impact California gubernatorial race

What happened: The U.S. Department of Justice launched a criminal investigation into multiple sexual assault and misconduct allegations against former Rep. Eric Swalwell (D-Calif.). Swalwell, who was a Democratic frontrunner in the California gubernatorial race, suspended his campaign on Sunday, November 13, and resigned from Congress on Monday, November 14. A new accuser, Lonna Drewes, alleged that Swalwell raped her in 2018. The House Ethics Committee issued a statement outlining its work to root out sexual misconduct in Congress following Swalwell's resignation.

Market impact: The political landscape in California has shifted, with Swalwell's withdrawal opening up the gubernatorial race. California Republicans, previously divided, are now more optimistic about their chances. However, the scandal may also drive increased scrutiny of political candidates' backgrounds and behavior, potentially impacting future campaigns.

What to watch next: The DOJ's investigation into Swalwell's allegations, which could result in criminal charges. The California gubernatorial race will also be closely watched, with the next Democratic candidate to emerge potentially facing increased scrutiny due to Swalwell's scandal. The House Ethics Committee's ongoing efforts to address sexual misconduct in Congress will also be a key development to monitor.