Concern over a possible global economic slowdown led investors big and small to sell stocks on Monday, raising fears about the staying power of the market’s post-Great Recession rally.
At one point Monday, the Dow Jones Industrial Average had fallen by as much as 1,089 points. By the end of trading, the stock market benchmark had dropped 3.6 percent, or 588.40 points, to close at 15,871.35. The Standard & Poor’s 500 Index fell 3.9 percent on the day, marking an 11 percent decline from the record high it achieved in May.
Meanwhile, U.S. stocks jumped at the open Tuesday after China’s central bank cut interest rates to support its economy. Ted Bridges comments to the Omaha World Herald on what this means for investors.