Dow Jones plunges as US stocks take big loss

THE DOW Jones industrial average plunged more than 1100 points as US stocks last night took their worst loss in six and a half years.

Two days of steep losses have erased the market’s gains from the start of this year and ended a period of record-setting calm for stocks.

Banks fared the worst as bond yields and interest rates nosedived.

Health care, technology and industrial companies all took outsize losses and energy companies sank with oil prices.

At its lowest ebb, the Dow was down 1597 points from Friday’s close.

That came during a 15-minute stretch where the 30-stock index lost 700 points and then gained them back.

The Dow finished down 1175.21 points, or 4.6%, at 24345.75.

The slump began on Friday as investors worried that creeping signs of higher inflation and interest rates could derail the US economy along with the market’s record-setting rally.

Energy companies, banks, and industrial firms are taking some of the worst losses.

The S&P 500 has fallen 7.8% since January 26, when it set its latest record high.

Investors are worried about evidence of rising inflation in the US. Increased inflation might push the Federal Reserve to raise interest rates more quickly, which could slow down economic growth by making it more expensive for people and businesses to borrow money.

And bond yields have not been this high in years, making bonds more appealing to investors compared with stocks.