"And some of our common friends on the right [from the Republican/conservative camp], including those who work in institutions that we hold dear - their views then were reduced to the fact that the system should be burned to the ground, and the phoenix will rise from the ashes."

Old video of Kevin Warsh (Trump's new candidate for the post of head of the US Federal Reserve)

This quote indicates that Warsh (or/and his entourage) considered the idea of ​​a "cleansing crisis". This scares investors, because the Fed should usually put out fires, not add fuel to the fire.

Markets hate uncertainty and "ideological" officials. If investors believe that the new head of the Fed will not save the banks or the economy, they start selling assets in a panic.

This is one of the reasons why the markets are falling now.