After losing 666 points on Friday the Dow Jones industrial average continued to swing wildly Monday closing down -1176 points (4.61%).
At one point it plunged more than 1600 points. Investors and employees with 401(k)s panicked over the plunge down below the 25,000 mark. Analysts say the markets are still in record territory and really the only concern is the percentage of loss. The market closed today with a correction of around 4%. “It is ugly but it needs to happen and it’s healthy,” according to one money expert.
At its worst levels, the Dow has fallen 2,200 points over the past two sessions. And at one point the Dow was losing 100 points a minute.
The President has pointed to the success of the stock market as a litmus test for a healthy economy and this economy is stronger than it has been in a long time and the economic fundamentals are sound, according to billionair market pundit Mark Cuban.
While the wild fluctuations may not be an indicator of the economy tanking, other money experts say that the dive is caused by computerized algorithmic trading.
The Dow losses were fluctuating between 1,000 and 1,500 points.
According to reports, the anxiety may be due to the downgrade in American debt.
Analysts also say that the stock market is going to continue to fluctuate and the key is to stay in for the long-term.
A change in the 10-year bond rate and the Fed warning it may raise rates At least three times this year may have also contributed to the drop.
The tech heavy NASDAQ was also down 273 points. S&P is off 113 points.
.@AshWebsterFBN: “For years, we haven’t seen anything like this. It’s been a slow, steady upward build. And all of a sudden, just like falling off the top of a cliff a little bit, we’re seeing this type of sell-off, & it’s shocking.” pic.twitter.com/VgzPycJGb0
— Fox News (@FoxNews) February 5, 2018