US stocks fell sharply after former US National Security Adviser Michael Flynn pleaded guilty to lying to the Federal Bureau of Investigation (FBI) regarding his improper contacts with Russia.
The Dow Jones Industrial Average on Friday plummeted 245.13 points, or 1.01 per cent, to 24,027.22. The S&P 500 lost 28.07 points, or 1.06 per cent, to 2,619.51, Xinhua news agency reported.
The Nasdaq Composite Index was down 96.18 points, or 1.40 per cent, to 6,777.79.
Analysts said uncertainty has weighed on the financial markets. Gold and US Treasuries rallied following the news as Wall Street fled to safe haven assets immediately.
Meanwhile, investors also awaited a Senate vote on tax reform. The US Senate Budget Committee on Tuesday approved the Republican tax bill to overhaul the US 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.
US stocks fell in the early trading on Friday, after Senate Republicans delayed voting on their tax bill.
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.