Dow Jones drops nearly 1,200 points in largest daily points plunge in history
By Cecilio Leacock IBexclusive News Saturday, February 3, 2018.
(IBexclusive) - The Dow Jones continued to plunge Monday, falling more than 1,100 points in a deep-diving drop that started last week.
Monday's slump brought the index back below 25,000 points, a level it first crossed about a month ago. Just minutes before closing, the index had fallen 1,150 points, or about 4.5%.
The downwards market spiral comes after the Dow's devilish 666-point plunge last Friday, which sent investors scrambling.
The Standard & Poor's 500 index also continued to fall Monday, dropping about 75 points, or 2.7% just minutes before closing. The S&P, considered a benchmark index by most professional investors, has lost more than $1 trillion in market value in the past three market days alone.
The Nasdaq followed suit, falling 181 points, or about 2.5%.
The combination of overall economic growth, low interest rates, and beefed up support from central banks has allowed stocks to reach record-breaking heights under President Trump's first year in office.
But experts have voiced concern that the unusually calm state of the stock market has signaled an imminent drop.
"It's like a kid at a child's party who, after an afternoon of cake and ice cream, eats one more cookie and that puts them over the edge," said David Kelly, the chief global strategist for JPMorgan Asset Management.
Stock brokers have correlated the recent market free fall to creeping signs of higher inflation. Exacerbated inflation, experts have warned, leads the Federal Reserve to raise interest rates more quickly, slowing down economic growth by making it more expensive for people and businesses to borrow money.
The Monday drop marks the biggest one-day points plunge in history. But the 777-point plunge in September 2008 was equivalent to 7%.
Trump, who has taken credit for market booms, has stayed conspicuously mum on the recent market free fall.
Speaking at an event in Ohio Monday, the President asserted that "America is once again open for business," touting his recently-passed tax overhaul bill.
"Factories are coming back," Trump proclaimed, as the Dow continued to plummet.