Volatile markets: Dow drops 500 points then gains it back

Volatile markets: Dow drops 500 points then gains it back
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U.S. markets began what is expected to be a turbulent day with steep losses before regaining ground within minutes of Tuesday’s open.

The Dow Jones industrial average opened Tuesday 520 points lower, a day after the index suffered the biggest ever loss by points in a single day.

In a sign of how volatile the market could be, the Dow recovered quickly to gains less than 30 minutes after open.

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The Dow opened with a 2 percent loss a day after losing 1,179 points. It had dropped more than 1,500 points by mid-afternoon Monday before recovering to close at 24,345.

The plunge broke the Dow’s previous record for the largest daily loss by points, set on Sept. 29, 2008, when the index dropped 777 points.

Dow futures slid 105 points lower overnight, which set the tone for losses to start Tuesday trading.

The Nasdaq and S&P 500 also opened lower Tuesday before turning positive. Both indexes suffered 1 percent losses before hovering around their Monday closing levels. The Nasdaq was up roughly 20 points about 15 minutes after open, while S&P only lost a single point at the time.

Further Tuesday losses would add to the toll of the worst weeks for U.S stocks in two years. Monday's plunge erased the stock markets' 2018 gains, and analysts have long warned of a potential bubble in the stock market.