- The Dow sets a startling record
- The biggest drop since 2011
- Plus: What’s next for the stock market?
Investors took a sledgehammer to the face yesterday as the major averages posted their worst drop in more than six years.
The Dow shed 1,175 points (its biggest point lost in history) to close lower by a staggering 4.6%. The S&P 500 wasn’t far behind, posting a loss of more than 4%. In a dramatic shift, the major averages flipped from extremely overbought to painfully oversold in a matter of days.
The stock market carnage is the top story at many major media outlets. Everyone wants to know what pushed stocks down an open elevator shaft. Was it earnings? The Nunes memo? A Trump tweet?
The truth is the market has grinded higher without a correction for too long. Stocks were too hot. Volatility was dead. Something had to give.
Check out this chart: