Dow dives nearly 500 points after White House ups the chance of government shutdown
Source: The Washington Post
By Thomas Heath December 20 at 4:03 PM
Trailing on a global rout, U.S. stocks dropped deep into the red as investors digested the Federal Reserve’s rate increase and its softer outlook for 2019.
They sunk deeper still on the news that President Trump would not sign the spending bill that would avert a government shutdown. Also lurking are growing concerns about a slowdown in the global economy.
The Dow plummeted nearly 464 points, or 2 percent, to close at 22,859. The Standard & Poor’s 500-stock index was down 1.6 percent. The tech-heavy Nasdaq composite was off 1.6 percent — and has dropped into a bear market — or more than 20 percent below its high.
“Investors were discouraged by the lump of coal they got in their pre-holiday stockings from Fed Chair Powell,” said Sam Stovall, investment strategist at CFRA. “The street was expecting a more dovish-sounding outlook. The Fed is basically saying that with the economy as strong as it is, it can withstand two additional hikes next year. A lot of investors expected the Fed to say, ‘One and done.’”
Read more: https://www.washingtonpost.com/business/economy/us-stocks-extend-losses-as-traders-digest-fed-news/2018/12/20/cf3edfd2-0464-11e9-9122-82e98f91ee6f_story.html?utm_term=.19cc67d08868&wpisrc=al_news__alert-economy--alert-politics--alert-national&wpmk=1
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