Dow Plunged Days After Hitting 26K
UPDATE: Dow has since recovered upwards of 500 points, as of February 6th after a day of volatility. This article won't be updated past this date, due to inconsistencies in the market. Please note of the date of the creation of this article before reading.
Only 24 days ago, the dow hit 26,000 in an onslought of increases throughout the Trump presidency. Now, it skimmed returning to the 23,000 mark after dropping significantly within the past two market days.
The markets closed on February 3, 2018 at 25,337.87 points. They opened at the same amount of points on February 5, 2018 as the new market week commenced. It already had a sense of doubt after the Friday-crash of hundreds of points in the Dow.
Monday of Feb. 5th was disastrous for the Dow Jones, losing nearly 1200 points (-1175.75 points) in one day. The low of the day was 23,923.88 points, losing nearly 1600 points by that point in the day. It slowly climbed back up, unstable.
If you're an investor, you likely don't care about the direct point numbers, seeing as they can be quite unreliable. For you, today's Dow dropped -4.6%, worrying many.
Many market analysts are suggesting people who have invested do not sell any of their shares, seeing as many usually buy when the market is increasing and sell when it decreases, a common mistake that renders people often times losing money.
The best thing to do as you see the stock markets dive is to remain calm, and do some research to find out what type of economic downfall you can expect. A simple correction, something many have been expecting, us usually harmless.
When panic fills the hearts of investors, usually when a -5% drop is neared (similar to today's), it can sometimes lead to an economic crash like we saw back in 2008. Although markets have been projected to absolutely collapse shortly, seeing as it's regeneration period since the 2008 crash has been ongoing, this might not be it.
During the Trump presidency's first year, even if it's traditionally seen as 'unclaimed territory' for a President to claim Stock Market successes in their first year (due to the remaining influence by the previous administration), the stocks went up from around 19,800 points to 26,600. That's a near 7,000 point increase.
We'll have to wait and observe the economic stance for the next few days to notice if the Dow's crash will be long-lasting. Here's today's drops for other markets:
NASDAQ saw a -273.42 point drop (3.78%). NYSE saw a -512.43 point drop (3.92%).
APPL (Apple) saw a -4.1 point drop (2.50%). Almost all other markets, also declined.
Within the past two market days (Feb. 3, Feb. 5), the Dow Jones Industrials index has collapsed -665.75 points (2.54%) on February 3rd (the 7th biggest one-day point drop by this point) and -1175.75 points (4.6%) on 5th (biggest one-day point drop).
It accumulates to -1841.51 points (7.14%) drop in two days.