US stock stumbled and gave up their gains on Tuesday after Donald Trump Jr. made public an email exchange in which he acknowledged interest in meeting with someone purporting to be supported by the Russian government who had damaging information about Hillary Clinton.
The revelation comes amid intensifying scrutiny over whether members of the Trump campaign colluded with the Russian government to influence last year’s US presidential elections. It triggered a brief but sharp sell-off. The S&P 500 fell as much as 0.6 per cent before bouncing back to trade 0.2 per cent lower at pixel time.
Elsewhere, the Nasdaq Composite reversed a 0.3 per cent advance to trade as down as much as 0.4 per cent. However, the tech-heavy index rallied and was back up 0.1 per cent.
The dollar also took a leg lower, with the DXY index giving up a 0.2 per cent gain to trade 0.1 per cent lower. The move was particularly pronounced against the Japanese yen, with the dollar dropping from a session high of Y114.49 to as low as Y114.06 — representing a swing of 0.4 per cent.
The step-up in political turmoil also propped other demand for other haven assets. Yield on the 10-year Treasury note, which moves inversely to price, was down a fraction of a basis point after having been up all morning.
Gold swung from a 0.5 per cent loss to a 0.2 per cent gain and is currently trading 0.1 per cent lower at $1,213.44 per troy ounce.
According to the email exchange released on Twitter by Mr Trump Jr on Tuesday, the president’s son was first contacted on June 3 by Rob Goldstone, a PR executive and former British tabloid journalist, about meeting Russian lawyer Natalia Veselnitskaya.
In the email, Mr Goldstone said the person can “provide the Trump campaign with some official documents and information that would incriminate Hillary [Clinton]“…and would be very useful to your father.”
He added: “This is obviously very high level and sensitive information but is part of Russia and its government’s support for Mr Trump.”
Mr Trump Jr responded minutes later, saying: “…if it’s what you say I love it especially later in the summer.”