The Down Jones Industrial Average fell by more than 1000 points Monday, the biggest daily loss in its history, plunging below the 25,000 threshold it surpassed in January.
The Dow was down 1029 points by 3:07 p.m. Monday, surpassing the 777-point loss triggered by the House’s rejection of the bank bailout plan in October 2008.
U.S. stock markets opened trading Monday with heavy losses as investors brace for a series of expected Federal Reserve rate hikes.
The Dow opened 183 points lower than its Friday close of 25,520, starting the week at 25,337. The Nasdaq and S&P 500 also opened with losses, down 0.8 percent and 0.7 percent respectively
Monday’s losses come after the worst week for U.S stocks in two years. The Dow sunk 665 points Friday and closed more than 1,000 points lower than the previous week’s record high close at 26,616. It was the biggest single drop in a day for the Dow since June 2016.
President Trump and several administration officials touted the record-setting stock boom set off by the 2016 presidential election. As the Dow added 8,000 points over his first year, Trump routinely took credit for the booming market and improving economy.
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UPDATE: Dow drops below 25,000, wiping out a month's worth of gains https://t.co/sZtKI4laSH pic.twitter.com/iDCZvYskLa
— The Hill (@thehill) February 5, 2018
Quite a move! Ended today down 4.6% – but compared to Black Monday in 1987 when it dropped 22% in one day, it’s not the worst ever. Could we be in for more???
The crash on October 19, 1987, a date that is also known as Black Monday, was the climactic culmination of a market decline that had begun five days before on October 14. The DJIA fell 3.81 percent on October 14, followed by another 4.60 percent drop on Friday, October 16. On Black Monday, the Dow Jones Industrials Average plummeted 508 points, losing 22.6% of its value in one day. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06.
The Crash was the greatest single-day loss that Wall Street had ever suffered in continuous trading up to that point. Between the start of trading on October 14 to the close on October 19, the DJIA lost 760 points, a decline of over 31 percent.
Yahoo Finance sez:
Let’s take a step back and assess the situation. The stock market isn’t crashing — not yet, anyway. In fact, even after this week’s ugly market action, the Dow and the S&P 500 are both still positive for the year by more than 3% each and are up by more than 20% since the beginning of 2017. All we’ve really done is lost the past few weeks of gains. In a nutshell, at this point, it’s a minor market correction, not a crash. We’re just not used to seeing corrections lately.
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