The Dow reeled briefly after Donald Trump Jnr releases email about meetings with Russians but recovered by close. The S&P 500 was nudged lower.
Technology shares held their rally for a third day. Energy companies also perked up as the price of oil rose. The Dow traded flat closing at 21,409. The S&P 500 retreated -1.90 points or 0.08% to 2,426.
Oil price went up $48 a barrel on the expectation that Libya and Nigeria could be pressured in to curbing output by OPEC and a lower forecast of US crude oil production for 2018.
Micron Technology (+2.85%), Western Digital (+2.78%), Vertex Pharmaceuticals (+2.73%) and Illumina (+2.46%) were among the big movers. While retailer, Michael Kors fell -7.36% after a sell rating from MKM Partners according to Zacks. Chipotle Mexican Grill also slid -2.81%.
- Dow 21,409 0.00%
- S&P 500 2,426 +0.08%
- Nasdaq 6,193 +0.27%
- Russell 2000 1,413 +0.33%
- NYSE Composite 11,744 -0.06%
- Gold 1,215.7 +0.20%
- Oil WTI $48.06 +2.50%
- 10-Year Treasury Yield 2.35% -0.01
First, an email chain
The Dow sank shortly after Trump Jnr released a chain of emails that suggested deleterious information and documents would be provided about Hilary Clinton to which President Trump's son responded with apparent delight saying: "I love it."
Although released by Trump Jnr on Twitter as images, the emails are now on the NYTimes website in chronological order. The spectre of impeachment reappears.
Broad sheets quickly speculated on the time of impact. The Dow showed a distinct plunge within an hour of the Twitter release dropping over 120 points before recovering.
Although investors may stick to the fundamentals, focusing on earnings and signs of a stable economy rather than the Trump pledges and promises; today's seismic market reaction shows the unfolding drama in the White House still has the power to send the market into a tailspin.
Fed policy: caught between a dove and a hawk?
Ahead of Federal Reserve, chairman Janet Yellen's testimony before the US House of Representatives; Lael Brainard, a central bank governor, gave a speech where she presented her views on balance sheet normalisation and its cross-border effects.
Many major central banks are signalling tightening policy in the face of a growing global economy and the US is expected to begin reducing its balance sheet soon.