Financial experts say not to panic despite Dow drop
(WKEF/WRGT) – The Dow Jones Industrial Average saw the largest single-day point drop Monday, falling more than 1,175 points at the closing bell.
That means it closed at just more than 24,000, erasing its gains for the year.
The NASDAQ and S&P also closed down, and experts said a recent interest rate hike could be a major factor.
The new Federal Reserve chairman was also sworn in Tuesday, and there are concerns he will raise interest rates fast.
FOX 45 reached out to a local financial expert for his take on the drop.
“It’s normal to have an emotional reaction and want to do something,” Director of Equity Researching at Buckingham Financial Group Ryan Johnson said, “but really, the best thing you can do is stick with a plan and know that this is part of a normal, healthy operating market. And really, there’s no reason to make any rash decisions.”
Johnson said for most people, your best bet is to maintain the course you are on, as despite the drop, the market is still only down 2 percent for the year.
To put this into perspective, he said that the crash of 1987 dropped just 500 points, but that was over 20 percent.