Dow Jones Industrial Average today experienced its worst point drop of 1,175 in a single day of trading.
In terms of percentage, Dow Jones — which mirrors the performance of 30 of US’ biggest companies — was down at 4.6 percent, now with a total of 24,346 points.
US economic strategist Lindsey Bell, explained that the market hasn’t seen any sort of real pull-back in quite some time, the reason why it brought in certain shock. A quite larger drop was most recently observed in August 2011.
But there are various bounds to resist panic. While this is the largest point drop in the history of Dow, several worse cases were recorded in the last 15 years in terms of percentage.
“Today’s Dow -4.6% plunge is large and concerning. But it is percentage — not points — that matters. And on that basis, today does not make the Top 25 of worst Dow days,” said Wall Street Journal financial editor Dennis Berman.
2008’s global financial crisis led Dow to a 7.9 percent drop while the worst cutback happened during the Black Monday of 1987, a decrease of 22.61 percent.
Although Dow erased today its biggest gains this year, the index is still higher than it was in November 2017.
Also, this cutback does not deny the fact that Dow Jones has one of the most incredible market performance in history. It has almost quadrupled in value since March 2009.