AZUZ: Next, wild swings in the U.S. stock market. Following Monday's historic drop in points for the Dow Jones Industrial Average, the index of 30 significant stocks, had its fourth largest gain yesterday. It closed up 567 points after closing down 1,175 points the previous day.
One thing that's important to point out is that while these are historic swings in terms of points, which represent dollar values of different stocks, they're not historic when viewed as percentages. In Monday's decrease, the Dow dropped 4.6 percent. In Tuesday's increase, the Dow rose 2.3 percent. Those percentages are nowhere near the historic market crashes of 1987 or 1929, or the historic margin gains of 1933 or 1931.
Still, there are signs of instability in the stock market and they're watched so closely because that market is one indication of how the U.S. economy is doing and its rises and falls affect markets around the world. American investors are concerned about wages, inflation, interest rates, which we've explained a bit yesterday. But most analysts and the U.S. government say the economy is very strong and they don't appear worried about what this could mean in the long term.