The Dow Jones Industrial Average plunged nearly 5% on Tuesday as investors and analysts warned that a global economic slowdown would have a severe impact on stocks.
Investors are concerned about the impact on U.S. consumer spending, which is a key driver of economic growth.
The Dow Jones is down more than 500 points in the past four weeks and the S&P 500 is down almost 1,000 points.
The S&P is down 3.3% for the year as of 11:00 a.m.
Investor sentiment is mixed, with most traders believing that the market will rebound soon.
Investment banks are forecasting a boost in U.K. corporate earnings and higher consumer spending.
Investors are also concerned about a global slowdown, as the United States has been hurt by the fallout from the Chinese stock market turmoil.
Analysts expect the Dow Jones to rebound as the U.N. meeting in New York next week is called, and that the S+P 500 will end the year up nearly 4% from its November peak.
But some economists are worried that the Dow could still drop more than 1,500 points before the markets rebound.
This would be a historic correction.
“There is a chance that this will be the largest correction since the Great Depression,” said Michael A. Sperling, an analyst at JPMorgan Chase.
“I think it’s possible to see a Dow drop more, perhaps up to 1,900 points, before the market rebounds.
The markets are so strong that if this happens we will be able to see the S=P rebound.”
On Tuesday, the Dow dropped as much as 2,000 for the first time in nearly a year.
The Dow fell 1,800 points for the week.
On Monday, the S-1 index of S&s stock indexes posted a record decline as investors took a more cautious view of the market.
The index fell 2.1%.
On Monday and Tuesday, investors held back their bets on the S and S+Ps and bought only options on the Dow.
Some stocks sold off, including Apple, Netflix, and Facebook.
Shares of Amazon and Facebook have fallen sharply this year, leaving some investors frustrated.