Dow plunges more than 1,000 points Monday after major drop last week
The stock markets plunged Monday, with the Dow Jones Industrial Average dropping more than 1,000 points on the heels of a major drop last week.
The Dow dropped by as many as 1,500 points, before rebounding to close the day down nearly 1,200 points, or 4.6 percent. The S&P 500 dropped 113 points, or 4.1 percent. The NASDAQ index was also down 3.7 percent.
The drop marked the second straight week of bad news for the financial markets, as investors reacted to signs of potential inflation and a possible interest rate hike by the Federal Reserve bank later this year.
Last Friday, the Dow experienced its worst weekly percentage drop in two years, after closing down nearly 666 points, or 2.6 percent.
Monday's drop has political implications as well.
President Donald Trump has touted stock market gains since his election, often taking credit for soaring stock prices and the growth of the economy under his watch.
"The stock market has smashed one record after another, gaining $8 trillion in value," Trump said in his State of the Union speech last week. "That is great news for Americans' 401k, retirement, pension, and college savings accounts."
The recent market volatility complicates Trump's message, however, and serves as a reminder of the riskiness of touting stock prices that can rise — or fall — in a matter of hours.
A White House official told CNBC Monday there was reason to be "concerned" about the stock market drop.
"We're always concerned when the market loses any value, but we're also confident in the economy's fundamentals," the official said in a statement.