Dow Jones drops by about 500 points during Trump tax speech

Dow Jones drops by about 500 points during Trump tax speech

The recent days of decline in share indices have come as a reaction of investors to changes in the outlook for the United States and global economy.

"So what happened today was we had a few market sell-offs". European indexes were down about 2 percent, while Japan's Nikkei lost 4.7 percent.

Earlier in the day, the Dow briefly plunged almost 1,600 points, before recouping half that loss within minutes, but its gains for the year were still gone.

Meanwhile, shortly after trading began this morning, the FTSE 100 index was down 81.20 points, or 1.1%, at 7,362.23.

Compare that 4-percent drop to the biggest drop ever, which was Black Monday in 1987, when the Dow dropped 22 percent.

The Dow Jones Industrial Average dropped over 1175 points.

The Dow Jones has registered its largest one-day points fall in its 122-year history, wiping out all the gains made so far in 2018.

The rout in U.S. markets continued to ripple around the globe, reports CNN. Australia's benchmark S&P/ASX 200 lost 3.2 percent.

Fears of contagion risk subsequently spread to equity markets last week as higher-than-expected United States wage growth figures added to concerns the Federal Reserve may have to raise rates further and more aggressively than forecast.

Investors may get a hint of the direction of interest rates when trading resumes in Asia early Monday, and possibly more insight after the U.S. Treasury's $66 billion in auctions of 3-, 10- and 30-year bonds from Tuesday to Thursday.

Hebert said this isn't a major shock, after seeing higher interest rates come into the market on Friday.

In response to that, investors moved to sell out of stocks and put money into assets like bonds which benefit from higher interest rates.

The Dow Jones industrial average fell 159 points, or 0.6 percent, to 25,364.

The Canadian dollar closed at an average trading value of 80.11 cents USA, down 0.67 of a U.S. cent.

Bob Phillips at Spectrum Management Group said the sell-off might have been driven by people just taking profits from some of last year's gains.

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