Top U.S. equities markets tanked on Thursday as investors weighed future actions from the Federal Reserve and President Trump’s push for border security funding, which was threatening a partial government shutdown.
The Dow Jones Industrial Average was down about 600 points, more than 2 percent, its lowest point since October 2017. The Nasdaq plunged more than 160 points, while the broader S&P 500 fell nearly 60 points.
The volatility in the markets on Thursday followed a drop on Wednesday in response to the Federal Reserve’s decision to raise interest rates for the fourth time this year. Chairman Jerome Powell has signaled that the central bank will pull back from regular rate hikes in 2019 and told reporters this week that the U.S. economy could moderate next year due to “crosscurrents.”
While the Senate advanced legislation Wednesday evening to fund the government until Feb. 8, Trump told House Republican leaders on Thursday that he would not sign any short-term funding bill that does not provide money for a wall on the U.S.-Mexico border. Senate Democrats have vowed to vote against such a measure, increasing the odds of a partial government shutdown after Friday when the current funding stream expires.
