NEW YORK (CBSMiami) – It was a day of nonstop action on Wall Street.
The day after an 1100 point decline in the Dow Jones Industrial Average, the stock market spent most of the session wavering between negative and positive territory.
After several dramatic ups and downs, the president of the New York Stock Exchange came out to soothe investors’ nerves.
“Markets are volatile at times, they’re smooth at times,” said Thomas Farley, NYSE President. “There’s nothing new under the sun, that’s been the case for 225 years since the exchange was founded right here on this corner.”
Still, the last few trading sessions have not felt routine.
The Dow Jones plunged more than four and a half percent on Monday, the largest drop since 2011.
The turbulence follows nine years of stock market growth, which began with the end of the Great Recession. In the past year, stocks have shattered one record after another
With the long uphill climb, investors began to forget what volatility feels like.
“People have been lulled into this sense of thinking maybe it’s the new normal,” Farley said. “But it’s not the new normal.”
As the economy grows, the Federal Reserve may raise interest rates to try to ONTROL INFLATION. That could affect corporate profits and push stocks lower. But trader Jonathan Corpina says it’s a healthy trend.
“Markets cannot be one way,” Corpina said. “We cannot go straight up or straight down.”
The question that remains for investors is whether Wall Street is seeing a long overdue pause, or whether the bull market is going bear.