Worst Christmas Eve Trading Day: US Stocks Slump Ahead of Christmas

© AFP 2023 / Bryan R. Smith A worker sweeps the floor after the closing bell of the Dow Jones at the New York Stock Exchange, March 24, 2017 in New York
A worker sweeps the floor after the closing bell of the Dow Jones at the New York Stock Exchange, March 24, 2017 in New York - Sputnik International
WASHINGTON (Sputnik) - The US stock market took another tumble on Monday when the Dow Jones Industrial Average dropped by 653 points, or more than 2 percent, to below 22,000 in the worst Christmas Eve trading ever.

The S&P 500 index fell 2.7 percent and the Nasdaq Composite Index dropped 2.2 percent.

The previous worst Christmas Eve trading for the Dow and the S&P 500 took place in 1985, when both indexes fell by a little over 0.6 percent.

Monday’s dive comes on the heels of the Dow’s worst week of trading since October 2008. Last week, the index lost 1,655 points, or 6.8 percent.

READ MORE: Japanese Yen, Swiss Franc Rally Amid US Political Tensions, Trade Woes

The markets responded to the political turmoil in Washington, DC, according to media reports.

Earlier on Monday, US President Donald Trump blamed the Federal Reserve as being the "only problem" for the US economy.

Prior to that, the Federal Reserve raised interest rates last week for the fourth time in 2018, a move that prompted immediate criticism from Trump.

The National debt is shown behind Federal Reserve Chairman Jerome Powell as he testifies on the semiannual monetary policy report to the House Financial Services Committee, Tuesday, Feb. 27, 2018, in Washington - Sputnik International
US Treasury Secretary Says Trump Has No Plans to Fire Fed Reserve Chair
After that, Trump said the Federal Reserve does not have a feel for the market, does not understand the necessary trade wars, strong dollars or even Democrat shutdowns over the issues of building a border wall.

The US president then shifted the discussion to whether Federal Reserve Chairman Jerome Powell should be fired, according to media reports that were subsequently denied by Treasury Secretary Steven Mnuchin on Monday.

Analysts attribute the stock market woes to growing concerns over US tariffs and the resulting trade war, as well as the third shutdown of the US federal government this year over a dispute in Congress over funding to build a wall on the US-Mexico border. A partial shutdown began at midnight on Friday and is expected to last into the new year.

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