A week dominated by political drama in Washington ended with the specter of a deepening trade war, sending U.S. stocks to a three-week low and bolstering demand for haven assets.

The S&P 500 fell 1.1 percent in the five days to pare its gain in the third quarter to about half a percent. Friday brought the latest drama after a report that the Trump administration is considering sweeping limits to capital-market investments, forcing Wall Street to asses the impact on potentially billions of dollars of assets. Stocks most sensitive to trade and ones linked to China paced the selling. The index bounced from its lows after dipping below a key technical indicator.

Stocks were under pressure for most of the week, but the start of an impeachment inquiry of President Donald Trump on Tuesday brought the steepest selling, as another major risk was added to a market on edge over slowing global growth. The dollar advanced, and Treasuries rose in the week.

Heading into the weekend, stocks started stronger before the latest salvo from the Trump administration in its spat with China over trade rattled the market. Trade tensions had shown signs of easing in recent weeks ahead of a Chinese delegation’s visit next month for high-level talks.

— Bloomberg News