Wall Street opens the day sharply lower ahead of Christmas break
- Markets set to close early due to the Christmas holiday.
- Treasury Secretary Steven Mnuchin holds calls with bank executives.
- All 11 major S&P 500 sectors are in the negative territory.
Major equity indexes in the United States opened the day with large losses on Monday and the Dow Jones Industrial Average was last seen losing 0.85% while the S&P 500 and the Nasdaq Composite were down 0.75% and 0.8% respectively.
Reports of the U.S. Treasury Secretary Steven Mnuchin holding calls with the executives of large banks sparked fears over the U.S. potentially facing a financial crisis. In a press release, Mnuchin explained that the banks didn't have any liquidity or "clearance or margin" issues but the markets reacted negatively to this development. Similarly, Treasury bond yields extended their slide to reflect a risk-off mood. At the moment, the 10-year reference is down nearly 1% on the day.
Out of all eleven major S&P 500 sectors, industrials, consumer discretionary, materials, consumer staples, and energy all lose more than 1% in the early trade.
The only data from the U.S. on Monday showed that the Chicago Fed's National Activity Index improved to 0.22 in November from 0 in October but failed to help the stock markets.
The United States Economy and Politics in 2019.