Dow plunges 1,175 -- worst point decline in historyStocks went into free fall on Monday, and the Dow plunged almost 1,600 points -- easily the biggest point decline in history during a trading day.
The drop amounted to 4.6% -- the biggest decline since August 2011, during the European debt crisis.
The White House said in a statement that President Trump was focused on "our long-term economic fundamentals, which remain exceptionally strong." The statement cited strengthening economic growth, low unemployment and increasing wages for workers.
The VIX volatility index, a measure of market turbulence, skyrocketed a record 116% on Monday to the highest level since August 24, 2015, the last time the Dow plunged 1,000 points in a day. The spike signifies how calm Wall Street had been -- and how unprepared the markets were for trouble.
The reasons why Stocks are getting pummeled at the moment are concerns that the Fed will raise rates and the consequent rising interest rates. Another reason the stock market has risen so much over the past year has been the steady growth in corporate profits. Companies are healthy, and investors have rewarded them by pushing up their stock prices.
Stocks have been rising pretty much in a straight line since November 2016, and that's not exactly healthy, because when the Fed raises rates, the cost of borrowing money increases.
