The stock market ended a wild day with its biggest drop in six and a half years
UNL Economist Eric Thompson tells KLIN News that he doesn’t think the dramatic drop suggests that the long term trend of an improving market has ended. But he says it may suggest that the Markets may have gotten a bit ahead of themselves and it may be at a lower level now. Thompson says we don’t know yet if it will bounce back up over the next month or so or if it is corrected now and will trend up from its current level.
Thompson says he cannot emphasize enough that the markets have been up very sharply so given that sharp increase it is not unexpected to have a sharp decline when the market gets to the point it needs to correct itself. Thompson says there have been some things over the last few days causing some concerns for stocks…in particular the rise in interest rates.
the Dow Jones industrial average briefly plunged nearly 1,600 points Monday. The index ended down 1,175, its biggest point drop of all time and its worst percentage decline since August 2011. A market rout that began Friday because of worries over inflation and higher interest rates deepened, erasing the gains the market accumulated in the first few weeks of the year.