The following is an excerpt from BILL HUTCHINSON | February 6, 2018 | abcnews.go.com |
The Dow Jones Industrial Average rallied on Tuesday and shot up 568 points, a day after it plunged a record 1,175 points on Monday.
The Dow closed at 24,912, a 2.33 percent gain, while the S&P 500 finished up 46.27 points to 2,694, a 1.75 percent increase. The Nasdaq Composite soared 148 points to 7,115 -- a 2.13 percent hike.
The late afternoon rally came after the market started off with a nose dive. At the opening bell, the Dow sank more than 500 points and fluctuated 1,167 points throughout the day.
The Dow is still hovering near correction territory after reaching a record high of 26,616 on Jan. 26, 2018.
"Ten percent is the theoretical correction," said David Lutz of Jones Trading.
But Lutz noted the market could likely spike again before a correction settles in. He said the market was a long way from turning into a bear market, a period when the market pulls back 20 percent from its record high.
He said it seemed that markets appeared to rally as soon at the European stock markets closed around 11:30 a.m. Eastern Time. The DAX index in Germany fell 294 points, while the FTSE 100 in England plummeted 193 points.
Earlier Tuesday, U.S. Treasury Secretary Steven Mnuchin expressed confidence in the market in Washington while addressing the House Financial Services Committee on Capitol Hill.
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