The release of Donald Trump Jr.'s emails about a meeting with a Russian lawyer sent the dollar lower, and investors moved to safety in bonds.
Stocks initially plummeted, with the Dow down more than 100 points, after the younger Trump issued a statement and released emails Tuesday morning that showed he was told he would be provided with disparaging information on Hillary Clinton as part of the Russian government's support for his father's campaign last year.
There was a quick and violent market reaction that later partially reversed. Treasury yields, which move opposite prices, had been higher on the day but were slightly lower just before noon. The 10-year yield was 2.37 percent.
The dollar, higher on the day, gave up its gains and was trading at the low of the day against the euro. The dollar held some gains against the yen. The dollar index was at 95.98, after hitting a high of 96.20 earlier in the day.
"The revelation is that Trump Junior was willing to take opposition research from the Russians, when instead the proper thing may have been to go to the FBI," said Marc Chandler, head of fixed income strategy at Brown Brothers.
"I would think it raises questions. What are we most interested in? [Trump's] legislative agenda. Anything that distracts him from his legislative agenda is not good," said Chandler