NEW YORK (CBSNewYork/AP) — Stocks tumbled Friday after news that ex-Trump adviser Michael Flynn pleaded guilty to making false statements to the FBI.
The Dow Jones industrials lost 237 points, or 1 percent, to 24,036. The Standard & Poor’s 500 fell 28 points, or 1.1 percent, to 2,619, erasing its gain from Thursday.
Investors were worried that the developments could spell trouble for the White House and its legislative agenda, including a massive tax overhaul that has been making progress in the Senate.
The Dow blew past the 24,000 mark for the first time Thursday, leaping 331 points to 24,272.
“Every time we hit these milestones, it attracts the attention of the public and the public has been very skeptical of this bull market up until recently,” said Bill Watts of MarketWatch. “So as we hit these numbers, perhaps it helps to draw more retail investors in from the sidelines.”
President Donald Trump took credit for the record, tweeting: “The Dow just broke 24,000 for the first time (another all-time Record). If the Dems had won the Presidential Election, the Market would be down 50% from these levels and Consumer Confidence, which is also at an all-time high, would be “low and glum!”
“If you go back and look at other presidential terms, there have been some that have seen larger increases, but it is an impressive run,” said Watts.
The stock market has been steadily going up since 2009. Investors say the Trump administration’s pro-corporate business approach has helped fuel the rally further.
Experts say the trend is largely because of the prospect of corporate tax cuts and the relaxation of government regulations for big business, propelling more people to get back into the market.
“People just wanna get in now right, yea, people call it a FOMO market, fear of missing out,” said Watts. “They don’t want to be left behind.”
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)