THE DOW JONES industrial average has plunged more than 1,000 points as a weeklong market swoon continued.
The Dow is 10% below the record high it set just two weeks ago, putting it in what is known on Wall Street as a “correction.”
Technology companies, the leading sector over the past year, and banks fell the most. Microsoft lost 2.3%
The Standard & Poor’s 500, the benchmark for many index funds, is also 10% below the record high it set two weeks ago.
The market’s turmoil began last Friday and has continued this week as investors worried about early signs of inflation.
Analysts have also been saying the market has gotten much too expensive after a huge run-up over the last year and has been long overdue for a pullback.
Worries about inflation set the market rout in motion last Friday, and many market watchers have been predicting a pullback after the market’s relentless march higher over the past year.