The drop followed the Dow’s worst week since the 2008 financial crisis, the CNBC reported earlier. The Dow declined by more than 2 percent by the end of the day, falling below 22,000, while the S&P 500 fell 2.7 percent, slipping into a bear market. The Nasdaq Composite Index also slid 2.2 percent, making the social media users anxious, especially ones who are directly connected to the market economy.
Dow Jones drops more than 600 points for worst Christmas Eve in history for traders withOUT a Complete trading plan. traders with a complete trading plan are in good shape. for the losers. thank you for the donations. Merry Christmas.— stock trader (@stocktradr) 25 декабря 2018 г.
We should never confuse the stock market with the economy, but…— Matt Fuller (@MEPFuller) 24 декабря 2018 г.
On October 3rd, the Dow was at 26,828. Today, with the Dow currently down 650 points, it’s at 21,792.
In less than three months, the Dow Jones has shed almost 19% of its value. That is actually concerning.
Took a look at the DOW Jones today and 😱😱— J.Butler (@relly_rel7) December 25, 2018
Dow Jones at the beginning of the "Great Depression" showing Dec 1931 drop of around 22% — Dec 2018 is on track to match this. pic.twitter.com/mVCf3xnZu6— @StoicMeditation (@RussellMcNeil) December 25, 2018
On the 11th day of Christmas the DOW Jones gave to me: Crippling capital losses— Shit Stain McClain (@theBrahmatron) December 25, 2018
The fall of the US markets is reportedly in response to turmoil in Washington as reports suggested that President Donald Trump is discussing how to remove Jerome Powell from his position as chairman of the Federal Reserve. That discussion exacerbated an already dour mood on Wall Street, adding to existing concerns about the impact of the trade war with China, slowing economic growth both in the US and abroad, and the partial government shutdown in Washington.
Markets are on track to have their worst end-of-the-year since 1931, the height of the Great Depression. According to CNBC, the second worst Christmas Eve for the Dow was more than 30 years ago, in 1985, when it fell just over 0.6 percent. Monday's drop amounted to 2.9 percent.
Treasury Secretary Steven Mnuchin tried to reassure bankers, tweeting that he had spoken with the President and claiming that Trump had never suggested firing Powell and doesn’t have a right to do so.
(1/2) I have spoken with the President @realDonaldTrump and he said “I totally disagree with Fed policy. I think the increasing of interest rates and the shrinking of the Fed portfolio is an absolute terrible thing to do at this time,…— Steven Mnuchin (@stevenmnuchin1) 22 декабря 2018 г.
(2/2) especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”— Steven Mnuchin (@stevenmnuchin1) 22 декабря 2018 г.
Mnuchin also spoke on Sunday with the heads of the six largest US banks in order to reassure investors that the financial markets and economy were functioning properly.
"The banks all confirmed ample liquidity is available for lending to consumer and business markets," the statement from the Treasury said. “We continue to see strong economic growth in the U.S. economy with robust activity from consumers and business,” Mnuchin added.
However on Monday Trump continued his criticism of the Federal Reserve, saying that it is “the only problem” the US economy has, while comparing the central bank to a golfer with no short game.
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch — he can’t putt!— Donald J. Trump (@realDonaldTrump) 24 декабря 2018 г.
The NYSE closed early on Monday at 1 p.m. ET. The exchange will remain closed on Tuesday for Christmas day and reopen on Wednesday after the public holidays.