UNITED NEWS INTERNATIONAL (UNI) — The Dow Jones industrial average plummeted nearly 1,200 points on Monday, Feb. 5, marking the largest one-day point drop in its history.
The Dow is a high-profile U.S. stock market index that represents the weighted average of 30 of the country’s biggest publicly-traded companies — from Apple and Boeing to Verizon and Walmart.
It’s been red hot for months, but its fall from grace began Friday with a government report that showed rising American wages.
While that’s good news for consumers, investors worry it will lead to inflation. And inflation cold lead to higher interest rates, which make it more expensive for businesses to borrow the money they need to grow.
Steep losses over the past two trading days have wiped out all of the Dow’s gains since mid-December.
Meanwhile, stock market indexes around the globe have also begun showing signs of these same inflationary jitters.