The Dow on Monday fell 315 points, or 1.1 percent, to 22,123 in early trade, while the S&P 500 and Nadsaq both fell more than 1 percent.
U.S. President Donald Trump's budget director and chief of staff, Michael Mulvaney, said on Sunday the partial U.S. government shutdown could continue into January, when the new Congress convenes and Democrats take over the House of Representatives.
Publicly, the president lashed out Monday at the Federal Reserve as "the only problem our economy has" because it keeps raising interest rates.
Mnuchin then spoke with the heads of major USA banks on Sunday and issued a statement that evening saying the banks had "ample liquidity".
After a weekend of market-rattling statements by President Donald Trump and Treasury Secretary Steven Mnuchin and the beginning of a federal government shutdown, the S&P 500 ended an abbreviated Christmas Eve trading session in bear market territory. The S&P 500 has lost about 19.8 percent from its September 20 closing high, just shy of the 20 percent threshold that commonly defines a bear market.
They don't have a feel for the market.
The White House sought to project a message of stability on Wednesday about the U.S. economy amid ongoing market volatility triggered in part by confusing signals sent in recent days by President Donald Trump and his top advisers.
Mnuchin "also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly", the Department said. "But I think that they will get it pretty soon", Trump said, repeating his criticism. "I have great confidence in our companies".
Jake Dollarhide, CEO of Longbow Asset Management, said the Treasury and the Fed do not want to be caught off guard as they were during the 2008 housing crisis and financial crisis. Speaking to reports at the Oval Office on Tuesday, he said the central bank is hiking rates because they think the economy is so good. "I think she's now in that unfortunate position of being beholden to her left wing, to where she can not be seen as agreeing with the president on anything until after she's speaker".
To the displeasure Trumps further gradual interest rate increases, according to the (Fed) last week probably.
With stocks on track for their worst December since the Great Depression, Mr Trump has regularly berated the Fed for its stewardship of the economy.