The markets plunged Monday, Feb. 5, with the Dow falling nearly 1,600 points in the largest intraday point decline ever. The selling gathered steam on Friday when the Dow plunged 666 points, or 2.5%, its worst day since the Brexit mayhem of June 2016.
The sell-off that followed the positive January employment report on Friday should not have been a surprise. It was the typical market reaction to strong economic news during the early stages (relatively speaking) of a tightening cycle. A correction was called for, and the sell-off following the positive news was as good as time as any to take profits.
After Monday’s market carnage our next target was a standard 10% correction. That hit in both the Dow Jones Industrial Average and the S&P 500 when equities continued to plunge on Tuesday’s open. But once the magical 10% level was hit, equities quickly reversed.
Also, the $VIX Index had its biggest ever one-day move on Monday – it rose 20.01 pts; (or115.6%) to close at 37.32.
This "February 2018 market crash" caused us to look back at some of the more recent historical market crashes since 2000. Click "NEXT" to see the next item.