Record drop on the markets

The Dow Jones industrial average dropped more than 1,100 points Monday, erasing all its gains for the year.

The Dow's point loss would be its biggest of all time, though in percentage terms, its 5.6 percent decline wasn't as big as its worst drop during the financial crisis.

The drop was nausea-inducing to be sure, but a far cry from the Dow's record 22.6 percent Black Monday drop on October 19, 1987.

During Monday's session, the benchmark S&P 500's fall on Monday put its pullback from its January 26 record high at more than 6 per cent.

Some economists think the jobless rate by year's end could reach 3.5 percent, which would be the lowest level in a half-century.

The market's slump began on Friday as investors anxious that creeping signs of higher inflation and interest rates could derail the market's record-setting rally.

"Historically, market has 10 percent moves top to bottom in almost every year", Bruce Bittles, chief investment strategist at Baird, told The Post.

The drop continues a downward spiral that started with the Dow's devilish 666-point plunge on Friday. A wealth manager who spoke with Eyewitness News Monday points out the stock market is still in pretty good shape.


The 4.6 per cent loss took the Dow industrials back below 25,000, as a pullback from record highs deepened and investors grappled with rising bond yields and potentially firming inflation.

Banks are taking some of the biggest losses.

"The expectations were, because we had a lot of wage growth - about 2.9 percent - that it would ultimately affect corporate earnings, and that the Federal Reserve would raise rates and the market went down some 600 points on Friday", Hebert said.

"Along with Friday's drop, we've pretty much taken all the gains out of the market in 2018", he said.

In other markets, the S&P 500 stock index was down 3.8% and the technology-heavy Nasdaq, down 3.7% while the FTSE 100 index of leading companies was down 1.46% or 108 points lower.

The Dow as a whole has seen record breaking growth over the past year climbing near 7,000 points from the time President Trump was inaugurated to two weeks ago. Stocks fell sharply on Friday as traders anxious about inflation and rising interest rates.

The White House told CNBC: "We're always concerned when the market loses any value, but we're also confident in the economy's fundamentals".

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