U.S. markets rally after Monday’s historic sell-off

Robert Kleinhenz, chief economist with the Los Angeles County Economic Development Corp., agreed.

While this has caused many investors to worry, Bradshaw said she has advised her clients that this is an opportunity to invest more, not sell their shares.

If the index drops 20%, the markets halt trading until the next day, according to the SEC. Finance, tells WTOP it’s too early to be sure.

Around 10:55 a.m., the Dow Jones Industrial average was down 508.6 points or down 3.09% to trade at around 15,951.15 points on Monday morning. Stocks were up 3 percent in London, 4 percent in Frankfurt and 4 percent in Paris. The 10 sectors in the S&P 500 headed lower, with energy stocks recording the biggest decline, 5.2 percent, amid a slump in the price of oil.

Other key indexes also fell into correction territory.

U.S. stocks have been on a bull run for more than six years, after bottoming out in March 2009 in the aftermath of the financial crisis and the Great Recession. But everyday investors have other words for Monday’s intensified fall out, such as “Holy 401(k)”.

That had even presidential candidates sounding off on Monday’s rocky day on Wall Street, from Democratic candidate Bernie Sanders to Republican candidate Donald Trump.

And analysts caution that the markets may not calm down anytime soon.

Buying market pullbacks has been a winning trade for years now, but Monday’s head fake of a rebound may have made a dent on the “buy the dip” mentality. Asked about the correction, Templeton answered: “Markets have always been volatile”.

“With the active market open, we initially saw some slowness, but quickly returned to normal functionality”, the company said via email.

No one piece of news has sparked the market’s rout.

Oil prices fell more than 6 percent to fresh 6-1/2-year lows today as markets anxious about a China-led global economic slowdown that would drastically hit oil consumption at a time of plentiful supply. The price-earnings ratio for the S&P 500, a measure of how much investors are willing to pay for each dollar of company earnings, climbed as high as 17.2 in March. “There needed to be a bit of blowing off steam”.

But that story has been completely derailed by China’s economic slowdown. Rising doubts about China – and its impact of developing and emerging economies around the world – was widely blamed for Monday’s losses, which included a almost 1,100-point drop in the Dow in the first minutes of trading.

The Dow Jones fell 588.47 to finish the session at 15871.28 for a fifth day of losses. The benchmark has lost all of its gains for 2015, though it is still more than 40 percent above its level a year ago. “There has been a lot of indiscriminate selling of names that have little exposure to China”, he said. “But the U.S. economy is moving along at a pretty good clip and probably won’t be interrupted a whole lot by what’s happening in China”, he said. “It took on a crescendo feeling”, Janney’s Luschini said. Vanguard encourages investors to instead rely on your own agenda – what’s do you want to do over how much time? “Our brains are wired to panic”, Bilkie said.

“I think emotions got the best of investors”, said Philip Blancato, chief executive at Ladenberg Thalmann Asset Management in New York.

Perhaps, but it could be a rough ride in the meantime.

Whatever happens, it’s not going to be a short-term blip and then back to the days of easy money.