The Dow Jones industrial average plummeted as much as 1,500 points on Monday, erasing its gain for the year, as the market extended a slump that began on Friday.
The Dow’s point loss would be its biggest of all time, though in percentage terms, its 5.6 per cent decline wasn’t as big as its worst drop during the financial crisis.
The slide Monday brought the Dow back below 24,000 points.
Sliding down: The Dow Jones industrial average plummeted as much as 1,500 points on Monday
Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, which saw the market extending a slump that began Friday
A CNN graphic shows Dow dipping below 25,000 points on Monday afternoon
The market’s slump began on Friday as investors worried that creeping signs of higher inflation and interest rates could derail the market’s record-setting rally.
The Dow skidded as much as 1,500 points, before recovering some of its losses. It was down 872, or 3.4 per cent, to 24,651.
The Standard & Poor’s 500 index fell 74 points, or 2.7 per cent, to 2,686.
The stock market had its sharpest drop in seven years on Friday amid fears the Federal Reserve may act aggressively to force the economy to cool down.
The Dow plunged more than 660 points by the time it closed on Friday afternoon.
This fall marked the stock market’s worst week in two years.
The last time the index shed this many points in a single day was on August 8, 2011.