DOW, the brand index, loses the highest of its tenure, 1600 Points.
Dow witnessed an enormous crash by 1600 points. Dow is one of the best known indexes. The index saw a downfall of 1175 points on Monday. The day was already very volatile for the global financial markets and the crash at Dow raised a concern about the validity of the long term stocks.
This day was considered to be the largest sell off after the one which occurred in 2016. Markets from Asia, Europe to United States saw a slump. Financial analysts believe that this downfall was due to the concerns arising out of inflation.
Though the highest loss was of 1600 points which emerged at the afternoon of Monday, the overall loss for the day stood at 4.6%. This loss mainly revolved around the blue chip stocks, which are considered as one of the elite classes of stocks in the market.
This kind of loss made the day worrisome for the common masses of the United States of America. From housewives to retired people, everyone was concerned about the condition of their savings with the downfall of the DOW index.
Not only DOW but other international indices like Nikkei from Japan and Hang Seng index of Hong Kong saw the same crisis; for Nikkei it was 2.5% and for Hang Seng it was 4%. Countries like China, Australia and Korea were also not spared from the rough stock market rates.
The cause of the crash of the stock market at DOW is hike in wages as per many analysts. As per data there has been a rise in 2.9% in wages in the month of January due to more salary demands from American employees and encouragement from the Trump government about the rise in wages. While shareholders expect less profits due to more spending on wages.