The Dow Jones Industrial Average fell by almost 1,600 points Monday on fears of rising inflation from a good economic outlook. By the closing bell, the market had recovered somewhat for a 1,175 decline.
The 1,597 drop is the largest one-day point decline on record, according to The Wall Street Journal. All 11 sectors in the S&P 500 posted declines, led by energy, financials and the healthcare segment, the report said.
Monday's drop follows a 666 point decline on Friday, when a positive jobs report and rising wages plunged the market over concerns of rising inflation and interest rates.
Gains for 2018 have been wiped out, according to numerous reports.
The year started off strong with a record high of 26,616 on January 26, but investors have expressed concern that the strong economy fueled by Friday's jobs report, higher wages and tax cuts signals inflation and higher interest rates from the Federal Reserve.
This results in higher borrowing costs for companies, including the healthcare industry when it looks for capital to expand or acquire.
During the worst day of the financial crisis in 2008, the market dropped by 800 points.