Stock Market Index is going through one of the worst times before the eve of Christmas. Investors are concerned about the market as it appears that it may continue till the beginning of the new year.
The United States Stock Index is facing the worst session on the eve of Christmas. In this holiday season, the market closed by more than 600 points creating apprehension among everyone.
The S&P 500 index registered a 20% decline from a recent peak. S&P is known to decline by 2.71%. Similarly, Dow Jones Industrial Average fell by -653.17 (2.91%).
Even the other major stocks including the shares of Bank of America, Citi, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Wells Forgo, Apple, were found to be at their lowest before the Christmas.
In this situation, President Trump blamed the Fed for stock losses in a tweet. There are concerns that the President could fire the Federal Reserve Chairman, Jerome Powell over the recent Interest Rates hikes which led to more market losses. Trump even said that the only problem with the economy is the Fed.
Furthermore, Treasury Secretary, Steven Mnuchin’s phone calls to the six biggest US Banks further added anxiety among the traders, as if something unusual is going to take place. However, the Treasury officials said that the call to the bank executives was just a routine checkup.
All these incidents have created a fear and anxiety among the investors. They are shaken by the political and economic developments. The speculations of Trump firing Fed chief Powell, Trump’s decision to withdraw troops from Syria, a partial Federal Government shut down, Interest rates hikes, and Mnuchin’s unusual phone calls to the US banks have raised a wave of insecurity among the investors.
As a result, not only the United States but, even the market in other countries including Japan’s Nikkei Index and the Sensex had reported a decline due to these incidents.
According to the economists, in this situation, if the President removes Powell then it could lead to a deeper loss in the financial market.
The White House advisors try to ease down the investors for the concerns that the Trump could fire Chairman Powell in anger of the Fed’s interest rates hike. To handle the situation, the President’s chief said that Trump cannot fire Powell and Mnuchin even said that President had not suggested of firing Powell.
The market would be closed on Tuesday as the Christmas holiday. However, in the rest of the week there would be normal trading hours, but, the volumes are expected to be thinner due to the holiday season.