The Dow Jones Industrial Average has dropped 653, which means it fell below 22,000. The S&P took a hard hit and entered a bear market after dropping more than 20% from the last high.
A bear market occurs when a 20% or more drop follows a recent peak. It usually predicts declines in the stock market. The drop came after a 52-week high for the markets.
Nasdaq fell 2.2% but bond prices have increased. The 10-year treasury note value dropped 2.74%.
On Christmas Eve, President Trump tweeted criticisms about the Federal Reserve.
He claimed the Federal Reserve was the most significant problem with the American economy. He also stated that they do not understand the markets, strong dollars, allegedly Democratic shutdowns or trade wars.
Officials spent the weekend trying to secure the financial and public markets.
House Minority Leader Nancy Pelosi, D-CA, and Senate Majority Leader Chuck Schumer, D-NY, released a joint statement on Christmas Eve. It stated, “It’s Christmas Eve, and President Trump is doing nothing but making the country fall into chaos. The stock market is failing, and the president is carrying on a personal war on the Federal Reserve, after firing the Secretary of Defense.”
Christmas Eve’s market closed early in anticipation for the holiday closure the next day.
Christmas Eve, 1985 was also a difficult time for the markets, when indexes fell over .6%.