The Dow Jones industrial average lost more than 1,150 points Monday, dropping below 25,000 for the first time since Jan. 4 during a second straight day of sell offs.
It’s the worst single-day point drop the Dow has ever sustained, coming on the heels of Friday’s 666-point loss. The Dow’s gains for the year were erased amid a two-day loss of more than 1,700 points.
The market fell by nearly 1,600 points Monday afternoon before correcting a bit, zigzagging between losses of 800 and 1,000 points. The previous record for losses was 777.68 points on Sept. 29, 2008, a loss of nearly 7 percent that shocked the nation. It lost nearly 23 percent on Black Monday, Oct. 19, 1987.
As U.S. stocks resumed their downward trajectory after Friday’s selloff, European and Asian equities also slumped. Treasury yields fell and the dollar stabilized. Oil dropped and copper rose.
The S&P 500 Index and Dow Jones Industrial Average hit session lows Monday afternoon, with the Dow falling more than 700 points and all sectors of the broader gauge declining. The Stoxx Europe 600 Index retreated for a sixth day, its longest losing streak since November, following similar moves across Asia as both regions took their cue from the U.S. rout on Friday.
Yields on core government bonds in Europe fell, as did those of 10-year Treasuries. The pound slumped, and the euro declined.
The downward stock market move was sparked by U.S. wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies. Equity investors are looking for confirmation that recent declines represent the healthy correction many had expected after the stellar start to the year.
“The good news is bad news,” said Donald Selkin, New York-based chief market strategist at Newbridge Securities Corp., which manages $2 billion. “Last month the market went up by 6 percent — that’s unsustainable.”
Elsewhere, oil extended declines after U.S. explorers raised the number of rigs drilling for crude to the most since August. Copper climbed the most in a week. Bitcoin slid below $7,000.
This Article Was Originally From *This Site*
Powered by WPeMatico