Dow Plunges 1175, The Biggest Point Drop In History

Dow Plunges 1175, The Biggest Point Drop In History

European shares remained lower, while losses for MSCI's widely tracked 47-country world index broke $4 trillion.

Apple (AAPL) was the Dow's top performer after registering its largest percentage drop on Friday, a 4.42% decline.

The falls follow some good years for investors.

"Tokyo led a collapse throughout the region, diving more than five percent, with Hong Kong down more than four percent and Sydney sinking three percent". Treasury bond yields have risen sharply in recent weeks and the Federal Reserve is raising interest rates, which will raise borrowing costs for indebted companies and consumers.

"We all knew there was a correction coming at some point".

Ullmann compared the market to going from a drought to a downpour - just stay the course and the market should correct itself.

In Asia, the Nikkei 225 Average in Japan dumped 4.76% to 21,603.5, while Australia's S&P/ASX 200 slid 3.2% to 5,833,3. If the S&P declines 20% at any point in the day, trading is called off for the day.

By early afternoon in Asia, Dow and S&P futures were both down more than 4 percent, suggesting a weak open for USA markets.

What happened in the US?

The broader Standard & Poor's 500 index rose 46 points, or 1.7 percent, to 2,695. "We all know that", said White House spokesman Raj Shah.

Global stocks extend selloff, Treasury yields retreat from near four-year highs
Stock prices, as representing an estimate of the current value of future profits, should automatically rise as rates decline. Stocks haven't suffered a 5 percent drop since the two days after Britain voted to leave the European Union in June 2016.

USA investors are reacting to changes in the outlook for the American and global economy, and what that might mean for the cost of borrowing.

Some analysts said the market's slump, though a surprise, was looming after such a rapid advancement.

US stocks saw the biggest one day fall in six years on February 5 as investors rushed to take profits, after bond yields rose sharply last week, following an equities rally to record levels in January.

"This isn't a collapse of the economy".

Reitzes said that fundamentals certainly were not driving the "market turmoil". "There would be no need to panic when we start to see swings in the market like we have been", said Corpina.

Monday's stock market plunge puts President Donald Trump, who has bragged about the stock market repeatedly on Twitter since his election, in a hard position.

Around half of that loss was recouped within minutes, but its gains for the year were still gone as of late afternoon.

The yield on the 10-year Treasury bond, which in the previous couple of weeks put on more than 10 basis points, fell almost 2 bps in Asian trade on Tuesday to 2.65% as investors bought back into bonds. The energy sector contributed the most to the loss in the S&P 500.

"The declines in markets are steep and vicious and are fostering a feeling of fear which begets irrational behavior".