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German stocks slumped on Monday amid concerns about the impact of the Omicron strain and the deadlock over U.S. President Joe Biden’s $1.75 trillion investment bill, with Goldman Sachs cutting its forecast for U.S. economic growth for most of next year.

“A failure to pass BBB has negative growth implications,” Goldman Sachs economists, led by Jan Hatzius, said in the research report.

On the Covid-19 front, Germany has ruled out a Christmas lockdown but warned a fifth wave could no longer be stopped.

The benchmark DAX plummeted 373 points, or 2.4 percent, to 15,158 after losing 0.7 percent on Friday.

Automakers led losses, with BMW, Daimler and Volkswagen falling 3-4 percent. Travel-related stocks also fell, with airline Lufthansa down 4.6 percent after rejigging senior leadership team.

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