The wild ride on Wall Street continued Thursday with the Dow Jones Industrial Average plunging more than 1,000 points for the second time this week.
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At the closing bell, the Dow was down 1,032 points, or 4.15 percent, finishing a tough day at 23,860.
The other major indexes also took a tumble. The S&P 500 tanked 100 points to 2,581, off 3.75 percent from the previous day. The Nasdaq was down 275 points to 6,777, a 3.90 percent decline.
The Dow fell a record 1,175 points on Monday but rallied back on Tuesday to close the session up 568 points.
“I think that in some ways it is a continuation of what we saw on Monday. But the decline didn’t feel as panicked today as it did on Monday,” Yousef Abbasi, global market strategist for JonesTrading, told ABC News.
He said indications of “inflation risk on the horizon” — including higher-than-expected jobs and wage growth last week amid higher labor costs in manufacturing and non-manufacturing — was fueling the market’s nose dive.
“I think now what you are experiencing is even the fundamental buyer is a little bit nervous to see the market get its legs under it for not just one day but a few days,” Abbasi said.
Today, the Dow dipped below 24,000 for the first time since November. The index reached a record high of 26,616 on Jan. 26.
“We’re now in what we call full correction territory,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, told ABC News. “The Dow Jones and the S&P 500 have dipped below a 10 percent pullback from the high. So, that’s a full market correction now.”
And Frederick said the rough ride may not be over.
“I’m not ready to call the bottom,” Frederick said. “I always tell people it’s best to wait until you get an ease back in volatility and you get two good, solid days. We haven’t had that. We had one solid up day and the second day looked like it might be an up day and then it sold off into the close. I didn’t know it would be this bad today, but clearly it’s not over.”
White House deputy press secretary Raj Shah told reporters that while President Donald Trump is “concerned about long-term economic indicators and factor,” his enthusiasm over the economy remains high.
“Fundamentals in terms of long-term are very strong,” Shah said. “Unemployment and the labor market are very strong. Unemployment is at 4.1 percent, we saw wages rise on Friday … at a measurable level for the first time in nearly eight years or nine years and corporate earnings are high. We believe that these long-term fundamentals demonstrate a healthy economy.”
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