Dow Closes Down 588 After Dropping Over 1,000 Points During Monday

By admin

dow jones down

Dow Jones News – In a historic day of turbulence, the stock market whipped between nauseating drops and roaring comebacks on Monday before closing with another big loss.

Seized by fears that the Chinese economy is not as healthy as it appeared to be, investors sold with abandon at the opening bell and sent the Dow Jones industrial average down almost 1,100 points, the biggest decline on record in a trading day.

Then the market staged a dramatic comeback and almost erased its losses, coming within about 115 points of break-even. By late afternoon, stocks were sinking again — and the Dow closed down 588 points, or 3.6 percent, at 15,871.

“The movements we’ve seen have been so fast and so large,” Peter Costa, the president of the trading firm Empire Executions, said on CNBC. “You’re talking about 75, 100-point moves in two minutes. It’s been extremely fast, and it’s happened very, very quickly.”

The Vix, a market reading that measures volatility and is known as the “fear index,” hit 53. The last time it was over 50 was in March 2009, when the market hit its bottom after the financial crisis.

Investors around the world are worried about China, the world’s second-largest economic power and … continue reading

Via:: Costa Rican Times