Dow begins to rebound after losing as much as 1,500 points
iStock/Thinkstock(NEW YORK) — The Dow Jones Industrial Average plunged more than 1,500 points Monday afternoon, but rebounded in about 15 minutes.
The dramatic tumble in the market came after the Dow fell more than 600 points on Friday.
Health care, energy and financial stocks posted the largest declines. All 11 sectors of the S&P 500 were down, with less than a hour to go in the trading day.
The 1,500 point dive occurred around 3 p.m. Eastern time, but by 3:30 p.m. the market seemed to pulling out of its downward spiral and had clawed its way back. It was down about 740 points with 30 minutes to go before the closing bell.
Randy Frederick, vice president of trading and derivatives for Charles Schwab, said the fall had been expected after markets hit record highs.
Frederick said the market has “been going almost straight up since the start of the year,” adding that the pullback was “expected and healthy.”
“It doesn’t mean the bull market is over; it simply takes away some of the froth and irrational exuberance from stocks and puts us back on a more sustainable trendline,” Frederick said.
The White House downplayed the stock market drop as a part of a normal seesaw of the market but maintained that overall direction of the economy under President Donald Trump is strong.
“Look, markets do fluctuate in the short term. We all know that. And they do that for number of reasons,” Deputy Press Secretary Raj Shah said Monday aboard Air Force One. “But the fundamentals of this economy are very strong and they’re headed in the right direction — for the middle class, in particular. “
Shah specifically pointed to wage growth and low unemployment levels as indicators of the economy’s strength.
The political challenge for the White House in trying to distance the president from a bad day on the stock market. Trump, of course, has been quick to take credit for the stock market on its good days.
This is a breaking news story. Please check back for updates.
Copyright © 2018, ABC Radio. All rights reserved.
Leave a Reply
You must be logged in to post a comment.