Dow closes down more than 1,100 points; largest point dive in hi - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Dow closes down more than 1,100 points; largest point dive in history

Posted:

(ABC News) - The Dow Jones Industrial Average plunged 1,179 points on Monday, the largest point dive in its history.

The dramatic tumble in the market came after the Dow fell more than 600 points on Friday.

At one point Monday afternoon, the Dow was down more than 1,500 points, before slightly rebounding at the closing bell. Health care, energy and financial stocks posted the largest declines. All 11 sectors of the S&P 500 were down.

The 1,500 point nose dive occurred around 2 p.m. Central Time. At the closing bell at 3 p.m., the Dow finished down 1,179 points, or a drop of 4.62 percent.

Randy Frederick, vice president of trading and derivatives for Charles Schwab, said the fall had been expected after markets hit record highs.

Frederick said the market has “been going almost straight up since the start of the year,” adding that the pullback was “expected and healthy."

“It doesn’t mean the bull market is over; it simply takes away some of the froth and irrational exuberance from stocks and puts us back on a more sustainable trend line," Frederick said.

The Dow plummeted as President Donald Trump was speaking to worker at the Sheffer Corporation in Cincinnati, touting the recently-passed tax overhaul law.

"America is once again open for business," Trump said in his speech.

The White House downplayed the stock market drop as a part of a normal seesaw of the market but maintained that the overall direction of the economy under President Donald Trump is strong.

"Look, markets do fluctuate in the short term. We all know that. And they do that for number of reasons," Deputy Press Secretary Raj Shah said today aboard Air Force One. "But the fundamentals of this economy are very strong and they're headed in the right direction -- for the middle class, in particular."

The market meltdown came just hours after Jerome Powell was officially sworn in as the new chairman of the Federal Reserve Board, replacing Janet Yellen, who had served as Fed chair since 2014.

Powell was sworn in Monday morning in a private ceremony.

Shah specifically pointed to wage growth and low unemployment levels as indicators of the economy's strength.

Powered by Frankly