Dow Jones futures fall by 600 points after massive Monday sell-off
Futures for the Dow Jones Industrial Average slid on Monday night, pointing to a possible Tuesday opening drop of more than 1,000 points, CNBC reported, following the largest-ever single-day point drop during regular Monday trading.
Dow Jones futures fell by 633 points on Monday night, after the market had closed down 4.9 percent earlier in the day.
However, futures are volatile and the Dow Jones may open at a different level than anticipated.
The drop in futures comes after the Dow Jones plummeted over the course of the last two market days.
The stock market index fell by more than 1,179 points on Monday.
The Dow had dropped by 1,500 points during the day, but recovered to close at 24,345. The loss wiped out a month of gains.
Analysts have been warning of a possible bubble in the stock market after the Dow rose over the course of the past year, closing at a record-high of 26,616 last week.
Investors are thought to be selling stocks due to signs of a stronger economy, which could lead the Federal Reserve to raise interest rates.
President Trump and his administration have often touted the increase in the Dow as a sign of economic success since he took office. Part of the Dow’s slide Monday took place as Trump delivered a speech about the new GOP tax plan, falling by about 500 points during his remarks.
The Dow Jones is up by about 20 percent since Trump’s election, and stood at 19,827 on Trump’s inauguration.
Source:- http://thehill.com/policy/finance/372468-drop-in-dow-futures-point-to-stock-opening-with-1000-point-drop
