Wild Day On Wall Street
After opening down by almost 500 points, the Dow closes 120 points lower. The initial drop was triggered by a global selloff of stocks.
Most of the Asian and European indices were down by close to 10% between Monday and Tuesday. The American market was closed on Monday due to the Martin Luther King holiday.
Prior to the market’s open, the Fed cut interest rates by .75%, which was the reason why American stocks were not down by much more by the end of the day. The interesting thing about today was the deep sell off at the market’s open. Apparently, many people were still scared and decided to sell at a deep discount. About an hour into trading, rational heads had prevailed and buying propped up the Dow by about 300 points.
