ABC News(NEW YORK) — The Dow Jones Industrial Average fell more than 500 points at the opening of the New York Stock Exchange on Tuesday, a day after it plunged a record 1,175 points, but the index quickly recouped its losses and entered positive territory.
The Dow was up more than 200 points within the first half-hour of the trading day.
Tuesday morning’s initial nose dive came after two consecutive days of negative trading, including a 600 point drop on Friday.
Randy Frederick, vice president of trading and derivatives for Charles Schwab, told ABC News the fall had been expected after markets hit record highs. He said traders are still jittery about jumping back in.
“People need to be a little bit cautious,” Frederick said. “It’s time to sit back and wait because we might not have hit bottom.”
The Dow’s plunge on Monday set off global shock waves. Japan’s Nikkei 225 fell 4.73 percent and China’s Shanghai SE Composite Index was down 3.35 percent.
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