The stock market was sent into a plumet with Dow Jones Industrial Average stocks dropping more than 1,000 points with a 10 percent correction on Feb. 9, 2018. This was the second worst drop in American history after ‘Black Monday’ in 1987. Nasdaq also fell by 3.9 percent on Feb. 9, 2018.
Dow Jones Industrial Average is a stock market index which holds 30 large public companies that are based in the United States. Nasdaq was created by the National Association of Securities Dealers to enable investors to trade securities. Nasdaq holds more than 3,000 stocks which include some of the world’s biggest technology brands like, Apple, Microsoft, and Intel.
These stocks are expected to gain back their place and grow higher in the stock market. Investors are worried about inflation increasing, along with the fact that the Federal Reserve might raise interests rates, according to CNN. The Dow shut down below 24,000 points for the first time since Nov. 2017 and Nasdaq fell just before correction.
The U.S. is now in the ninth year of recovery after the Great Recession from 2007-2013. Investors aren’t worrying too much since stocks have been infrequent recently according to CNN.
In 2017 the stock market was quite calm so this helps investors forget that the stock market rises and declines from time to time. President Trump has deemed the stock market one of his achievements so far in his term.