Volatility picked up last week when news of Michael Flynn’s plea deal was misreported on Friday. ABC’s Brian Ross reported that then-candidate Donald Trump directed Michael Flynn to reach out to Russia to interfere with the Presidential Election.
This bombshell claim sent the markets cratering lower before rallying back into the close to end the day slightly lower. After hours, the news continued to evolve as ABC back-pedaled, claiming the uncited report had not been fully vetted and that Brian Ross had been placed on unpaid suspension for four weeks.
President Trump was quick to jump on the headline using it as another example of “Fake News.”
Meanwhile, the Senate took action and passed their own version of the tax bill in the middle of the night, early Saturday morning, sending the two versions to conference for reconciliation.
This process echoes the Democrats passage of the Affordable Care Act late at night with many Republicans later claiming that many of those that had voted for the bill had not actually read it.
Going into the weekend, the Major Markets had closed out with gains in the S&P 500, Dow Jones, and MSCI World Indices. However, Emerging Markets and Nasdaq experienced losses for the week as the two YTD leaders took a break in their gains.
Finally, Thursday marked the end of November as we move into the final weeks of the year. The S&P 500 ended with the second highest monthly gain of the year at 2.81% and the 8th consecutive monthly gain after March’s virtually flat performance.