Traders work at the New York Stock Exchange in New York, the United States, Dec. 24, 2018. U.S. stocks plunged on Monday, with most of the major indices booking their worst Christmas Eve decline, extending their huge losses in the previous week's rout. (Xinhua/Wang Ying)
U.S. stocks sank on Monday, with all the three major indices erasing over 2 percent at the close, as invest sentiment was dented by the turmoil in Washington amid uncertainties.
The Dow Jones Industrial Average slumped 653.17 points, or 2.91 percent, to 21,792.20. The 30-stock index is now more than 18 percent lower than its recent highs, creeping closer toward a bear-market territory.
The S&P 500 decreased 65.52 points, or 2.71 percent, more than 20 percent lower from its recent intraday highs in September, slipping into a bear market.
The Nasdaq Composite Index slid 140.08 points, or 2.21 percent, to 6,192.92. The tech-heavy index suffered another steep sell-off after dipping into bear market last Friday.
Most of the major indices booked their worst Christmas Eve decline and the U.S. equities are on pace for their worst December since 1931, during the depth of the Great Depression.
The Cboe Volatility index, widely considered the best fear gauge in the stock market, surged 19.79 percent to 36.07 on Monday.
The market responded to the turmoil in Washington, according to some experts.
"News generated gyrations at the moment and most investors were inclined to sell when approaching the end of the year," John Monaco, a trader at Wellington Shields & Co. LLC, told Xinhua.
