Dow Jones hit by Flynn reports

US stocks were on a rollercoaster ride yesterday, plunging almost 300 points from a record high after it emerged Donald Trump’s former national security adviser was prepared to testify against a “very senior” member of the president’s team in a Russia investigation.

The Dow Jones tanked as much as 1.3pc, or 292 points, before recovering to close 40.76 points down at 24,231.

Reports said Michael Flynn was going to testify against the president as part of a plea deal, and claim he was directed by Mr Trump to make contact with Russians before the US election.

Mizuho strategist Antoine Bouvet said: “The market is reacting to this ABC report that Mr Trump can be incriminated by Mr Flynn’s testimony. But it’s hard to tell how much substance there is. At best it’s a distraction from the tax reforms.”

The Dow closed above 24,000 for the first time on Thursday following a key endorsement for the GOP tax plan, that would see corporate tax rates fall to 20pc, from senator John Mccain.