Wall Street remained resilient over the past week even after markets suffered their most punishing days of the year in the middle of the week.
The S&P 500 was down 0.38% over the past five days, the Dow Jones Industrial Average slipped 0.44%, and the Nasdaq fell 0.61%.
Worrying news on the Trump campaign and presidency broke Monday, Tuesday, Wednesday and Friday evenings. The new allegations countered the White House's assertion that the president and his campaign had not colluded with Russia. Those messy political developments in Washington spilled into financial markets on Wednesday in the most punishing day for stocks of 2017. The Dow fell 372 points, while the S&P 500 suffered its worst day since Sept. 9.
The latest flood of distractions appeared to put progress on tax reform on the backburner. Markets had rallied since the November election on hopes over Donald Trump's pro-business agenda.
"It was the first time the markets started to throw in the towel on the regulatory and the tax reform not happening," Tim Courtney, CIO of Exencial Wealth Advisors, told TheStreet. "We could certainly see more of those types of days when it becomes clearer and the odds of these things [happening are] pushed way back into 2018 or never. The markets clearly indicated that they want to see that happen and it's not happening."
The Trump administration's headaches began on Monday evening when news broke that Trump had divulged highly classified intelligence to Russia during a meeting last week. Trump reportedly shared top-secret information on the fight against ISIS with Russian Foreign Minister Sergey Lavrov and Russian Ambassador Sergey Kislyak in a meeting in which U.S. media was barred, according to a report from The Washington Post. The meeting had also raised eyebrows because it occurred just a day after Trump fired former FBI Director James Comey.