U.S. stocks plunged on Monday, marking a second day of trading that generated steep declines, amid fears of rising inflation and potential rate increases by the Federal Reserve.
The Dow Jones Industrial Average plunged 1,175.21 points, or 4.6 percent, closing at 24,345.75 on Monday. Earlier in the afternoon, the index declined more than 1,500 points before recovering slightly. Even though it marks the biggest point drop ever, the market’s decline is far from the largest on a percentage basis. The largest historic percentage drop was on Oct. 19, 1987, when the market plunged more than 22 percent.
The two-day losing streak was sparked by a pickup in wages, which could usher in higher inflation. Average hourly earnings, which had been rising at a modest 2.5 percent in the recovery, increased by 2.9 percent from the year before, the Labor Department said on Friday.
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