The Dow has lost 9.13 percent of its value over three days of trading. It's bad, but investors have seen much worse in previous sell-offs. Still, 'crash' versus 'correction' is a matter of debate.
After Black Tuesday, Oct. 29, 1929, Variety declared “Wall Street lays an egg,” to describe a drop of 23 percent in the stock market over two days. In the stock market “crash” of 1987, the Dow Jones Industrial Average lost 22.6 percent of its value in one day. On Monday, the Dow dropped 634.76 points to 10809.85. Does the sharp decline qualify as a “crash?”
To some market observers, the latest decline is merely a “correction,” compared with what happened in 1929 and 1987. Despite the large drop – some 513 points last Thursday, as well – the Dow is down 9.13 percent over three days of trading.
“A stock market crash is in the range of 25 percent or more in one day,” says Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Lake Oswego, Ore. “We’re down about 10 percent in 10 days.”
Here are some of the worst market sell-offs:
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