As the Dow Jones Industrial Average dropped by 653 points Monday while the S&P 500 dropped more than 50 points, in a 20 percent fall from August, social media users are worried in their observation over one of the biggest falls in the US economy in recent years.
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.
READ MORE: Trump Calls Federal Reserve ‘Only Problem’ for US Economy
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.
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 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.