Markets don’t take well to uncertainty, so they don’t much like political instability. When U.S. trading closed on Wednesday, the Dow had dropped 373 points, after news reports alleged that the president had asked former FBI Director James Comey to end the investigation into ties between Russia and the Trump campaign and that in an Oval Office meeting Trump had revealed sensitive intelligence information to Russian officials. The 1.8 percent loss was the largest the since September of 2016—and the worst trading day of the Trump administration.
Thursday morning, trading opened to a very modest gain, and closed out the day with the Dow up 56 points from its Wednesday close. One likely explanation for this uptick is that investors are buying back into the market as they seek good deals created by Wednesday’s drop.
These fluctuations come on the heels of a big, unpredictable week of news. After markets closed on Wednesday, the Justice Department appointed former FBI Director Robert Mueller as a special counsel to investigate the connection between Russia and Donald Trump’s campaign, and another report shortly afterward revealed that the then-candidate Trump’s team knew that Michael Flynn, the former national security advisor, was under investigation when they hired him. Earlier, there were other stories, which included accusations that Trump revealed secret information to Russian officials during an Oval Office meeting closed to U.S. press and that Flynn tried to influence U.S. policies on Turkey while on the Turkish payroll but not registered as a lobbyist.