Dow Jones Industrial Average tumbles more than 1000 points


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

The stock market continued its massive slide Tuesday morning as the Dow Jones opened down 522.94 points, or 2.15 percent, briefly dipping into a correction phase - a 10 percent decline from the index's 52-week high - before rebounding.

While the drop had many on Wall Street panicking, that's technically not even considered a correction, which is defined as a drop of more than 10%. SPLRCM , up 1.2 percent, led the advancers, while the utilities index .

Using the stock market as the leading proof point of your economic successes is a fool's errand.

Toronto's TSX index also felt the pressure, tumbling 271 points, closing at 15,334.81.

The benchmark for U.S. share volatility went through wild gyrations after hitting a two-year high.

Traders are watching how the moves unfold from here - a sustained stock slump has the potential to undermine consumer and business sentiment, crimp borrowing and so start to curtail global growth. In December, the S&P 500's forward PE reached as high as 18.9 before analysts began to increase their estimates for companies reporting their fourth-quarter results. HSI dropped 5.1 percent and Japan's Nikkei .

The Dow was down 800 points at 3 p.m. Within minutes, it was down 900, 1,000 - and then 1,500 points. The S&P 500 posted a similar loss of 4.1 per cent, while the technology-heavy Nasdaq slipped 3.8 per cent.

Emerging market stocks lost 2.51 per cent.

Commonwealth Bank of Australia's money-laundering scandal and a litany of regulatory woes have put an end to its run of record profits. Schutte said that as central banks stop propping up the market, trading will probably be more volatile in the next few years. So, I definitely think: "be watchful".

Mnuchin said that he was not "overly concerned about the market volatility".

Bonds have been roiled in the past week on fears that the Federal Reserve will need to adopt a more aggressive rate hike policy as inflation picks up.

On Monday, February 5, 2018, the Dow plunged by almost 1,600 points and this decline is the biggest decline in points seen in history.

In currency markets, the Canadian dollar closed at an average trading value of 80.11 cents US, down 0.67 of a U.S. cent. At its lowest, early in the trading day, the Dow was down 567 points.

The Dow Jones industrial average fell 233 points, or 0.9 percent, to 25,295. "Europe is catching the virus and is aggressively lower", said Hughes. The Nasdaq composite climbed 40 points, or 0.5 percent, to 7,003.

Hopes that Wall Street won't repeat the scale of Monday's losses helped limit the selling during European trading hours.