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Dow Begins the Day With More Swings

Dow briefly rises more than 500, though it quickly gave it all away
By Newser Editors,  Newser Staff
Posted Mar 17, 2020 6:03 AM CDT
Updated Mar 17, 2020 9:01 AM CDT

(Newser) – The Dow got off to a wild start Tuesday, and investors might have to brace for that kind of pattern in the near future. The index rose more than 500 points at the open, then gave away all those gains and then some. It's been popping back and forth between positive and negative territory in its first half hour. At 10am, the Dow was down about 200 points, around 1%, while the S&P 500 was slightly in the red. The early swings come as the Dow attempts to recover from Monday's brutal loss of nearly 3,000 points. The market is in now a period of "eye-popping volatility," per CNBC, as seen in wild overnight swings in the futures market. In fact, a key gauge, the Cboe Volatility Index, is near its highest level in two years, reports the Wall Street Journal.

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"The markets just don’t know how negative an economic scenario they need to price in," Esty Dwek of Natixis Investment Managers tells the Journal. "For some people, an economic recession is a foregone conclusion, and how deep the recession will be is the question." Overseas markets weren't much of a gauge for what's in store Tuesday. Stock markets in Europe were generally down, while some in Asia were up and others were down. In Australia, a main index rose nearly 6%. (Read more stock market stories.)

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