After Historic 1,000-Point Plunge, Dow Dives 588 Points at Close
- After Historic 1,000-Point Plunge, Dow Dives 588 Points at Close
After an unprecedented 1,000-point decline at the open on Monday, the Dow closed with a loss of nearly 600 points.
It was an extremely turbulent day for U.S. stocks driven by deep fears about China’s economic slowdown. Stocks staged a comeback that nearly brought the Dow back into positive territory but that ultimately failed.
The 588-point decline was the worst for the Dow since August 2011.
Global fears about China’s economic slowdown are shaking stock markets around the world for a second week in a row. The wave of selling knocked the S&P 500 into correction mode for the first time since 2011 and the Dow to its lowest close in a year and a half.
Within minutes after the opening bell, the Dow plummeted 1,089 points. That is the largest point loss ever during a trading day, surpassing the Flash Crash of 2010.
“We have not seen this level of full-blown panic in markets for quite some time,” said Peter Kenny, chief market strategist at Clear Pool Group, a financial technology firm.