Dow Plunges 1,175, The Biggest Point Drop In History

[Skwim]

Updated at 4:55 p.m. ET

The stock market went on a wild ride again on Monday [2/5/18], with the Dow Jones industrial average closing down 1,175 points, its worst point drop in history. The Dow closed down 4.6 percent and turned negative for the year.

At one point Monday afternoon, the Dow was down 1,579 points — the largest intraday point drop in the history of the index.

"Investors were dumping out of stocks," NPR's Uri Berliner reports. "They were in free fall, something we've seen very little of during the steady bull market since basically 2009. And now we're seeing nerves in the market — some fear."

The previous largest point drop for the Dow was 778 points in September 2008, in the midst of the financial crisis.
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[socharlie]

it was going up like crazy: I said to myself somebody is shorting big time, soon it would fall as a rock...

 

[Revoltingest]

it was going up like crazy: I said to myself somebody is shorting big time, soon it would fall as a rock...

High stock prices hate the first sign of inflation or rising interest rates.

 

[Rough Beast Sloucher]

One factor is Fed interest rate hikes, past and anticipated future. This would reduce the amount of ready cash available to buy stocks and maintain the extraordinary rise in stock prices. Another is that stock prices outran earnings, although those have been decent. Add to this some profit taking because the numbers were so tempting. Result: an adjustment. Notice that there was a modest rebound after the fall. At one point the drop in the Dow was almost 1600, Closing was down 1175. People saw some bargains and grabbed them. The system is still healthy, although one might expect to see this kind of thing again until the P/E ratios and confidence in future growth get balanced out.

 

[YmirGF]

High stock prices hate the first sign of inflation or rising interest rates.

Oh, come now. It's all Trump's fault and you know it.

 

[Revoltingest]

Oh, come now. It's all Trump's fault and you know it.

Bush's!
No...Reagan's!

 

[YmirGF]

Bush's!
No...Reagan's!

I'll raise you a Clinton.

 

[Revoltingest]

I'll raise you a Clinton.

Absurd...Democrats have only positive effects.

 

[YmirGF]

Absurd...Democrats have only positive effects.

An adjustment in a hyper-inflated market is a positive, silly.

 

[Skipper]

This bubble took much longer to pop than I expected. I wonder who Trump will blame this on?

 

[David T]

High stock prices hate the first sign of inflation or rising interest rates.

Omg those . 50 hour raises to the working class is crazy bad.

 

[Revoltingest]

Omg those . 50 hour raises to the working class is crazy bad.

Tight labor market is more significant.
But the drop was only of @5% magnitude....so far.
I'm glad I decided to wait to buy stocks.

 

[David T]

Tight labor market is more significant.
But the drop was only of @5% magnitude....so far.
I'm glad I decided to wait to buy stocks.

NO buy high sell low! Its worked great for me.it gives me a reason to go to work everyday.

 

[Revoltingest]

NO buy high sell low! Its worked great for me.it gives me a reason to go to work everyday.

Been there & done that too in 2007.

 

[Buddha Dharma]

This bubble took much longer to pop than I expected. I wonder who Trump will blame this on?

Why Obama of course. The usual go to for racists. They're never going to get over that a black man was president. They'll be blaming Obama 50 years from now.

 

[Revoltingest]

Why Obama of course. The usual go to for racists. They're never going to get over that a black man was president. They'll be blaming Obama 50 years from now.

Aye, anyone who opposed Obama's policies is a racist.
Twas on this forum that I was informed that I am.
I learn so much here.

 

[Buddha Dharma]

Aye, anyone who opposed Obama's policies is a racist.

I don't think opposing Obama's policies is racist. I think the obvious double standard of many Republicans is. The Republican establishment made it clear from day one they were not going to work with Obama, before he had even done anything. They never did a white president that, and Republican voters never blamed and demonized any white president constantly like they did Obama. The evidence is mostly circumstantial, but it's there...

Rather one is a racist or not, I think it has to be acknowledged that Obama getting elected brought out an ugly side still under the surface in this nation.

 

[Revoltingest]

I don't think opposing Obama's policies is racist.

Shows how little you know!
But you're new here, & missed that discussion.

I think the obvious double standard of many Republicans is. The Republican establishment made it clear from day one they were not going to work with Obama, before he had even done anything.

While I can't speak for Republicans, I will say that it is possible that some of them opposed
Obama because of different agendas. I wonder about opposition being fundamentally rooted
in bigotry.....in the last election, when Democrats rallied behind the cry, "It's time for a woman!",
could her loss & their subsequent opposition to Trump be due to sexism? How dare a Mr Man
take what was her due!

On 2nd thought, I think it's all just politics.

 

[sun rise]

Oh, come now. It's all Trump's fault and you know it.

He claimed credit when it was going up so it's fair to blame him when it goes down.

In reality, Presidents have less control over the market than they like to imagine so I would not blame him for the drop if he had not claimed credit for the rise.

 

[Shaul]

Absurd...Democrats have only positive effects.

Tel that to Juanita Broderick.