Dec. 17 (UPI) — The Dow Jones Industrial Average fell more than 500 points Monday as stocks were down across the board amid concerns over rising interest rates.
At the end of trading Monday, the Dow was down 507.53 points, or 2.11 percent, while the S&P 500 dropped fell 2.08 percent and the Nasdaq Composite dropped 2.27 percent, as all 30 stocks in the Dow and all 11 sectors in the S&P 500 were down, CNBC reported.
Monday’s losses brought the S&P 500 to its lowest close for the year at 2,545.94 points. Both the S&P 500 and the Dow are on pace for their worst December performances since the Great Depression, dripping more than 7 percent this month.
A looming interest hike was cited as a factor in the widespread decline of the market, which appeared to be recovering from a tumultuous October and November before stumbling again in recent weeks.
President Donald Trump was critical of the Federal Reserve for considering increasing interest rates on Twitter Monday morning.
“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!” Trump wrote.
Michael Arone, chief investment strategist at State Street Global Advisors told CNN Trump’s tweets put the Fed in a difficult position. Responding to Trump’s tweets could conflict with the Fed’s stance as a politically independent entity and cause concern in the stock market.
“If the Fed doesn’t raise rates it will look like it’s succumbing to the bullying of Trump’s tweets,” Arone said.
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