Dow briefly falls almost 1600 points as U.S. stocks plunge

Dow briefly falls almost 1600 points as U.S. stocks plunge

The pan-European FTSEurofirst 300 index lost 1.51 percent and MSCI's gauge of stocks across the globe shed 2.96 percent.

The dollar index rose 0.49 percent, with the euro last up 0.06 percent to $1.2375.

The drop in the markets worries about what that means for our retirement investments, but Petrick said it's too early to tell how this will affect it.

"I think people should realize corrections inside a bull market are normal", said Mark Mark Avallone, President and Founder of Potomac Wealth Advisors.

On Monday, the S&P 500 ended 7.8% down from its record high on January 26, with the Dow down 8.5% over that time.

Many stock market records were broken Monday.

Partly because the Dow went up 7 and a half percent the first 29 days of January and went up all previous year.

About 11.5 billion shares changed hands in US exchanges on Monday, well above the 7.6 billion daily average over the last 20 sessions. On 6 May, 2010, the market fell more than 9%, a total of 998 points.

US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling almost 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially firming inflation.

David Kelly, chief global strategist at JPMorgan Asset Management, disagreed with the "popular narrative" that equities have been "tanking" because of fears that interest rates would rise due to higher inflation.

By the end of the day, all of the rapid positive growth for the dow in 2018 was wiped away.

The sell-off extended to the broader S&P 500 which fell by 113 points (or 4.1 per cent) to 2,649.

The plunge prompted Japan's Nikkei index to lose 4% in early trade on Tuesday, and Australia's S&P ASX 200 dropped 3%.

Bond markets found a measure of support on Monday, helping the United States 10-year yield ease back to 2.82 per cent.

Today (Feb. 5), the Dow plunged more than 1,000 points-the largest point decline ever during a trading day.

The slide Monday brought the Dow back below 24,000 points.

The trigger for the sell-off was a sharp rise in USA bond yields following Friday's data that showed U.S. wages increasing at the fastest pace since 2009, raising the alarm about higher inflation and with it potentially higher interest rates.

At its worst, the Dow fell by more than 1,500 points overnight. It was down 872, or 3.4 percent, to 24,651.