It’s been a day of wild price swings on Wall Street as the Dow attempts to stabilize a day after its biggest one-day drop ever sent a wave of anxiety through global markets.
In another volatile day of trading, the Dow Jones industrial average has taken investors on a wild ride. The average initially fell more than 567 points, or 2.4%, at the open, briefly pushing it into “correction” territory after it fell 10% from its recent record high on Jan. 26.
The Dow briefly rebounded and recouped all of its losses and was up 367 points. At 10:45 a.m., the Dow was unchanged for the day.
It had been a swift, steep decline for U.S. stocks in a span of seven trading days since it hit its peak last month. The epic slide — including Monday’s record 1,175-point Dow dive — has quickly pushed the market down more than 10% for the first time in two years.
The recent bout of turbulence has been sparked by fears that interest rates and inflation will spike due the improvement in the economy. Selling has also been exacerbated by selling tied to trading strategies that were betting on market calm and low volatility continuing.
Market turbulence in the U.S. has caused a ripple effect across the globe. Stocks in Asia sold off sharply again Tuesday, with shares in Japan falling 4.7% and stocks in Hong Kong diving more than 5%. The selling spread to Europe, with a major index that tracks shares there tumbling 1.7%.
nd in another sign of investors turning defensive, money is flowing back into U.S. government bonds, pushing the yield, which spiked to a four-year high of 2.88% Friday, down to 2.76%.