‘Worst Christmas Eve’ Ever in US Stock Market History After Trump Tweets

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The stock market has continued to plunge over the holidays after one of its worst weeks since the 2008 recession, as officials warned a US government shutdown could stretch well into the

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Source; Brendan Mcdermid / Reuters

Worst Christmas Eve ever

The New York Stock Exchange had its worst Christmas Eve ever.

The S&P 500, a compilation of the NYSE’s 500 most valuable companies, lost 2.7% of its total value on Christmas Eve amid political chaos. The Dow Jones Industrial Average, a grouping of the 30 largest US-based companies on the NYSE, declined 2.9% the same day.

Both are indicators of the overall health of the stock market, and both suffered their largest Christmas Eve drops ever and their most severe December dives since the Great Depression.

Monday ended with historic lows after the president used Twitter to attack the Federal Reserve, writing: “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 president reportedly discussed firing Federal Reserve Chair Jerome Powell, which he likely does not have the power to do. A move like that could lead to destabilization in the markets around the world.

“The Fed is like a powerful golfer who can’t score because he has no touch – he can’t putt!” he continued, referencing his own escalating trade war with China and the federal government’s partial shutdown caused by a dispute over funding for a wall along the US–Mexico border.

Treasury Secretary Steven Mnuchin also sent chills through the stock market with a phone call to the CEOs of the six biggest banks in the US — Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo — asking if they had cash reserves on hand to lend to consumers and businesses.

He was attempting to stanch the markets’ bleeding from earlier weeks. In a statement posted to Twitter Sunday, Mnuchin said, “The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations.”

The market is also reacting to the Trump administration’s trade war with China. The trade war helped knock China’s stock market into a bear market over the summer.

Japan’s Nikkei plummeted 5% on Tuesday, dragging it down to its lowest level in 20 months. In China, the Shanghai Composite dropped as much as 2.5% before recovering some of its losses to close down 0.9%.


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'Worst Christmas Eve' Ever in US Stock Market History After Trump Tweets
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The stock market has continued to plunge over the holidays after one of its worst weeks since the 2008 recession, as officials warned a US government shutdown could stretch well into the
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