Wall Street took investors on a turbulent ride Friday as stock indexes veered into a steep slide that knocked 350 points off the Dow Jones industrial average before the market eventually clawed back most of its losses.
The market stumbled after former national security adviser Michael Flynn pleaded guilty to lying to the FBI and said he would cooperate with the probe into Russian meddling in the U.S. presidential election.
That raised concerns among traders that the White House’s legislative agenda, including a tax overhaul under debate in Congress, could be at risk. Those jitters were allayed somewhat by early afternoon, when Senate Republicans signaled they have enough votes to push forward on the tax legislation.
“Once the Senate did announce that they had sufficient votes to move forward, there was a respite and we did come off the lower levels,” said Eric Wiegand, senior portfolio manager for Private Wealth Management at U.S. Bank.
The Standard & Poor’s 500 index fell 0.2 percent, to 2,642.22. The index still ended the day with its best week since mid-September. The Dow Jones industrial average slid 40.76 points, or 0.2 percent, to 24,231.59. The Nasdaq composite lost 0.4 percent, to 6,847.59. The Russell 2000 index of smaller-company stocks gave up 0.5 percent, to 1,537.02. — AP