02/06/2018

U.S. Stocks Whipsaw Amid Economic Concerns

Steep losses have erased the market's gains from the start of 2018

U.S. indices whipsawed on Tuesday, one day after the Dow Jones industrial average suffered its worst percentage decline since August 2011 and its biggest point drop in history.

The Dow Jones Industrial Average dropped as much as 500 points at the open of U.S. markets, but it quickly regained ground, rising slightly in early trading. The Dow was in positive territory on Tuesday afternoon, trading up 500 points at 24,846.91. The S&P 500 Index and Nasdaq composite index followed suit, initially sliding but recovering soon after trading opened.

Two days of steep losses erased the U.S. market's gains from the start of this year, ending a spate of record-setting calm for stocks with a pullback that market pros have been predicting for some time. The sell-off was sparked by concerns that higher wage growth could lead to inflation and faster rate increases by the Federal Reserve.

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