After a major downturn to start the day, in which the Dow Jones Industrial Average erased all of its gains in 2018, the markets recovered, and the Nasdaq managed to finish the day ahead 29.83 points. The Dow ended the day down 79.40 points to close at 24947.67, while the S&P 500 lost just 4.11 points and closed at 2695.95.
The arrest of Meng Wanzhou, the chief financial officer of Chinese telecom giant Huawei, spooked investors who were worried it could reignite tensions between the U.S. and China over trade.
Earlier in the day, the Dow was down nearly 800 points, just one trading day after shedding 799 points. The markets were closed on Wednesday (December 5), which was a National Day of Mourning to honor former President George H.W. Bush.
The markets started to recover after news broke that the Federal Reserve's plans to tighten monetary policy might happen slower than anticipated.
"What this week and half shows is an extraordinary sensitivity to headlines; more so than usual," Delores Rubin, senior equities trader at Deutsche Bank Wealth Management told CNBC "It's been very difficult to navigate the waters so far."