Dow's nearly 1,600-point plunge marks its biggest one-day point drop ever

Wow

The Dow plunged nearly 1,600 points at one point on Monday before recovering somewhat in afternoon trading.

The Dow Jones industrial average marked its biggest single-day point drop on Monday afternoon, plunging nearly 1,600 points during trading hours before recovering to close down 1,175.

Officially the Dow fell 1,597, a 6.26 percent drop. But the index of 30 large U.S. companies was recovering some of that decline as the day headed toward the closing bell at 4 p.m. in New York.

The previous record drop during trading hours was 1,089 points on Aug. 24, 2015, a 6.6 percent drop. But in percentage terms, the worst sell-off in recent years was the "flash crash" of May 6, 2010, when the Dow temporarily plunged 998 points, or more than 9 percent. Trading would recover both days, but the Dow would still close down more than 3 percent on each of them.

These more recent events challenge the sharp market downdrafts seen during the worst days of the late-2008 financial crisis. On Oct. 6 that year, the market fell 800 points during trading hours, or 7.7 percent, before recovering to close down 3.5 percent.

The worst point drop for a single day was the 777 decline on Sept. 29, 2008, when Congress first failed to approve the government's bank bailout plan. It would later go on to pass that plan.

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts