A 442-point surge for the Dow vanished at the end of the trading session Tuesday, the latest sign of how anxious markets have become about the health of the global economy.
At the end of yet another wild day of trading, the Dow actually ended with a loss of 205 points as fears continued to mount over China’s slowing economy and its contagion effect on the rest of the world. Just in the last six trading days, the Dow has lost a total of nearly 1,900 points, or 11%.
Volatility remains elevated, signaling that more turbulence may lie ahead. Just look at CNNMoney’s Fear & Greed Index, which is currently flashing “extreme fear.”
Some sort of bounce was anticipated on Tuesday due to the enormous losses that have been inflicted on the markets even though the American economy doesn’t appear to be falling off a cliff. All three major U.S. equity indexes had plunged into correction territory — their first 10% decline from recent highs since 2011.
Read more at CNN MONEY.