Stock market sees textbook correction
KALAMAZOO, Mich. —
The stock market has been on a wild ride the last couple days, from the largest single day point drop yesterday to a rebound today. The DOW closed at 567 points up for the day.
Newschannel 3's Christine VanTimmeren is live in the newsroom to explain what experts are calling a market correction.
Economic experts say what we experienced from yesterday to today is pretty much a textbook market correction, which is when the stock market reverses direction by about 10 percent.
The stock market hasn't experienced a correction in two years and many believe we were due for one.
Right after the opening bell on Tuesday morning the DOW dropped 567 points and raced back to a 350-point gain. That's after the market tumbled a record 1,175 points on Monday, which was the index's worst day since august 2011.
The stock market was riding all time high that began around the time President Donald Trump took office. Experts say the promise of tax reform and easier regulations contributed to the jump, but with a strong economy comes concern over inflation and rising interest rates, hence the correction.
However, experts say there is no need to panic with big swings.
Jonathan Corpina, A New York Stock Exchange trader, said, “Is this healthy? It is very healthy. Markets cannot be one way. We cannot go straight up or straight down. We need both buyers and sellers to really pull and find the right place where our market should be at.”
The question is if stocks will fall again and by how much.
Treasury Secretary Steven Mnuchin said the stock market is still performing very well and he continues to believe in its long-term impact.