Wild Ride: Dow Plunges by Nearly 1,600 Before Bouncing Back
Reuters byJohn Carney5 Feb 20180 5 Feb, 20185 Feb, 2018 Stocks raced sharply downward on Monday, ..
Reuters
byJohn Carney5 Feb 20180
Stocks raced sharply downward on Monday, with the Dow Jones Industrial Average falling by nearly 1,600, around 6 percent, before recovering to end with a decline of 1,179 points.
All the major indexes were down significantly. The S&P 500 fell by around 4 percent, the Nasdaq Composite fell by around 3.8 percent, and the broad Russell 2000 fell by around 2.9 percent.
Monday’s sell-off was not only deep but widespread, with all 11 sectors in the S&P 500 index posting declines. Financials, health-care, and energy sectors saw the steepest declines.
The declines erased the gains in the S&P and the Dow for the year. The S&P has lost more than $1 trillion in market capitalization, according to CNBC.
After a bumpy morning, the sell-off took on steam in the afternoon. The Dow shed hundreds of points when the sell-off accelerated beginning around 2 P.M. In the final hour of trading, stocks recovered nearly half of their value only to resume falling once again.
The Vix, which is a volatility index and often referred to as a “fear gauge,” rose 88 percent, its biggest one day gain ever.
