Dow Plunges Below 26,000 after Donald Trump Bashes Fed




 

By CCN.com: The Dow and broader U.S. stock market declined sharply Monday afternoon, as investors digested President Donald Trump's latest criticism of the 'gentleman who loves quantitative tightening,' a direct reference to Federal Reserve Chairman Jerome Powell.

Dow Plunges; S&P 500 and Nasdaq Follow

All of Wall Street's major indexes erased gains to trade firmly in the red by midday. As of 12:42 p.m. ET, Dow Jones Industrial Average plunged 322 points, or 1.2%, to 25,703.70.The blue-chip index rose triple digits after the open, reflecting a strong pre-market session for U.S. stock futures.

Twenty-eight of 30 index members reported losses. UnitedHealth Group Inc. (UNH) was the Dow's weakest link, falling 3.4%. Shares of Boeing Co (BA), McDonald's Corp (MCD) and Walgreens Boots Alliance Inc. (WBA) each fell more than 2%.

The broader S&P 500 index of large-cap stocks fell 1% to 2,775.18. All 11 primary sectors traded lower, with health care leading the declines. Health stocks were down 1.8% on average. Information technology also fell more than 1%.

The technology-focused Nasdaq Composite Index also reversed gains, falling 0.9% to 7,519.72.

A measure of expected volatility known as the CBOE VIX surged 23% to 16.68, where it was on track for the highest settlement since late January. The so-called "fear index" settled near five-month lows on Friday.

Read the full story on CCN.com.

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