U.S. stocks fall amid political uncertainty

NEW YORK, Dec. 1 (Xinhua) -- U.S. stocks closed lower on Friday, after former U.S. National Security Adviser Michael Flynn pleaded guilty to lying to the Federal Bureau of Investigation regarding his improper contacts with Russia.

The Dow Jones Industrial Average fell 40.76 points, or 0.17 percent, to 24,231.59. The S&P 500 lost 5.36 points, or 0.20 percent, to 2,642.22. The Nasdaq Composite Index was down 26.39 points, or 0.38 percent, to 6,847.59.

"My guilty plea and agreement to cooperate with the special counsel's office reflect a decision I made in the best interests of my family and of our country. I will accept full responsibility for my actions," Flynn told a court in Washington D.C.

Analysts said political uncertainty has weighed on the financial markets. All three major indices fell sharply after the news, with the Dow Jones Industrial Average dropping over 300 points around midday.

Gold futures and U.S. Treasuries rallied following the news as Wall Street fled to safe haven assets immediately.

Meanwhile, investors also awaited a Senate vote on tax reform. Media reported stocks pared their losses after Senator Mitch McConnell said that they had the votes to pass the Senate tax bill.

The U.S. Senate Budget Committee on Tuesday approved the Republican tax bill to overhaul the U.S. tax code, sending it to the Senate floor for a vote.

Republicans previously hoped they could pass a plan by late Thursday or early Friday, but were forced to delay voting after a setback.

U.S. equities have posted solid gains and notched record highs several times since the Election Day, partially boosted by expectations of lower corporate taxes.

The Dow Jones Industrial Average broke above the 24,000 mark on Thursday, as investors had high expectations that Republicans were on the verge of the biggest tax code overhaul in about three decades.

"We remain positive on U.S. equities given the strength of corporate earnings, progress on corporate tax reform, and a broadly supportive international economic climate," Humberto Garcia, head of global asset allocation for Bank Leumi USA, told Xinhua. Enditem