Saturday 30 May, 2020

Stocks close sharply lower after Trump again attacks Federal Reserve

US President Donald Trump. (AP Photo).

US President Donald Trump. (AP Photo).

Stocks plunged Monday, with the Dow Jones Industrial Average falling 653 points following President Trump's tweet attacking the Federal Reserve and its independence.

The Dow Jones lost 2.9 per cent and the benchmark S&P500 lost 2.7 per cent after the president's tweet expressing frustration over the Fed's decision to raise its key short-term rate.

The Nasdaq fell 2.2 per cent. Bond prices rose. The yield on the 10-year Treasury note fell to 2.74 per cent.

Trading volume was low as the market closed early ahead of the Christmas holiday shutdown.

President Trump lashed out at the Federal Reserve Monday after administration officials spent the weekend trying to assure the public and financial markets that Jerome Powell's job as Fed chairman was safe.

The Dow fell 532 points to an intraday low of 21,912 before recovering slightly.

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