Dow plunges 1,175 points on, January 5, but begins to recover

The Dow Jones Industrial average plunges a record 1,175 on Monday, February 5--sending shockwaves around the world-- but begins to recover modestly the following day.
By Susan Konig | Feb 08, 2018
Tuesday, February 6: The Dow Jones Industrial Average fell more than 500 points at the opening of the New York Stock Exchange today, just one day after it plunged an all-time record of 1,175 points.

However, today's (Tuesday's) losses were quickly recovered and the market and entered positive territory. The Dow was up more than 200 points within the first half-hour of the trading day.

This morning's initial nose dive came after two consecutive days of negative trading, including a 600 point drop on Friday. The Dow has lost about 10 percent since reaching a record high of 26,616 on Jan. 26, 2018 -- putting it in correction territory, experts say.

The Dow's plunge on Monday also set off global shock waves. Japan's Nikkei 225 fell 4.73 percent Tuesday and China's Shanghai SE Composite Index was down 3.35 percent.

The S&P 500 also opened lower today but quickly bounced back and was up 16 points just before 10 a.m. The Nasdaq Composite dropped 128 points at the start of the trading day but rallied and was up more than 50 points in the first 30 minutes of trading.

U.S. Treasury Secretary Steven Mnuchin expressed confidence in the market Tuesday morning in Washington while addressing the House Financial Services Committee on Monday.

"The stock market is up significantly, over 30 percent since President Trump was elected," Mnuchin told the committee. "We're monitoring the stock market. They're functioning very well and we continue to believe in the long-term impact of the stock market."

He added that the fundamental economics are very strong and the recent passage of tax reform is "very positive for long-term economic growth. We're already beginning to see that in terms of corporate investment back in the United States and that impact on corporate earnings."

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