On Tuesday morning, Japan's Nikkei index plunged 4 per cent while the S&P/ASX 200 in Australia dropped 3 per cent. It was the largest point loss in history, although the index has suffered worse percentage losses in the past. On the mainland, the Shanghai composite slid 1.52%. The Nasdaq climbed 148, or 2.1 percent, to 7,115. The Dow began Tuesday up about 6,000 points since the election.
"I don't think anyone's that worried yet, see how it goes for the next few days", said Westfield, New Jersey resident Tom Garry. "And now we're seeing nerves in the market - some fear".
A prolonged market downturn will have dire consequences for New York, which relies on Wall Street for about a fifth of all tax collections. It could mean sharper increases in interest rates should the US Federal Reserve feel the need to curb inflationary pressure. The Dow is still up 21.3 percent over the last 12 months.
I keep hearing the term "circuit breaker".
The White House said the fundamentals of the market remain sound but so far that's not slowing the massive selloff and there's no guarantee the market will rebound soon. That was the average's sixth-worst drop ever, and it sparked all sorts of apocalyptic headlines and made investors nervous that an all-out stock market crash could be imminent.
At the closing bell, stocks rebounded a bit after a taking a huge plunge. The idea was to prevent panic selling. In this case, that was less than two weeks ago, when the Dow closed at a record high of 26,616.
How are global markets reacting? European stocks were also down sharply.
The blue chip index Dow Jones Industrial Average lost 0.76% of its value to 25,326.93 points. This sends it directly to a four-year high.
The Dow ended at 24,345. At its low, the Dow was down 1,597 points, before buyers rushed in and limited the decline.