Both major stock indexes tanked on Monday in the worst day of Christmas Eve trading ever and the worst December since the Great Depression.
The Dow closed down about 650 points, a 2.9 percent drop. The Dow has never closed down more than 1 percent on Christmas Eve, stocks usually climb in the last weeks of December.
Many suspect that Treasury Secretary Steve Mnuchin’s Sunday calls to reassure top bankers about liquidity backfired as many banks were not publicly concerned about liquidity. Going public with the statement may have “frightened” the markets. Many expect a prolonged bear market, with more than 80 percent of world stock markets are in a death cross when the 50 day moving average moves below the 200 day moving average.
The Dow Jones Industrial Average fell below 22,000 and the S&P 500 entered a bear market today after plummeting more than 20 percent from its high. The Nasdaq fell 2.2 percent and bond prices rose.