The Dow Jones Industrial Average fell more than 2,000 points to 20,842, the S&P 500 lost more than 1,400 points to 2,622 and the Nasdaq Composite lost more as the US economy continues to deteriorate.
But it’s the Dow that will be most affected by the drop.
It dropped more than 14% in the past week.
The index has lost more of its value in the last year than the Dow Jones.
It fell 5,928 points or 5.5%.
“We are watching this stock market crash,” said Jason Dufresne, head of investment research at UBS Wealth Management in London.
“It is going to be very hard to get the economy back on track.”
The Dow is up just 2.9% this year and is down more than 15% over the past five years.
The S&P 500 is up 5.1% and the Dow is down 12.4%.
The stock market has dropped almost 40% since the recession ended in 2007.
It was trading near all-time highs in early 2015 before a drop in the price of oil and the Federal Reserve’s decision to raise interest rates led to a spike in the market’s losses.
“It is a disaster, but it’s also the beginning of a recovery,” said Scott Sheets, an analyst with BMO Capital Markets in London, referring to the drop in prices.
The Dow has rallied more than 100% over a period of 15 years, but that is not enough to keep up with the market.
“If you are talking about a 10% correction, this is a big problem,” said Kevin Davis, an economist at Capital Economics in Chicago.
“The Fed is not doing anything right.”
Duchesne, who tracks the Dow, said that investors will be watching the Dow to see how much it will recover from the downturn.
“I think it will be a big story and if it is down, the Dow will likely rise, but I do not expect it to be much higher,” he said.
“We should see the Dow rise in a few days or weeks.”
The S&p 500 and Nasdaq both fell after trading was halted.
The Nasdaq fell 6.7% after the stock market closed at the bottom of the bell on Wednesday.
The Nasdaq dropped 1.6% after trading resumed.
The SBC, the Nasex and the WTS were all down slightly.
The decline in the Dow comes after the Federal Open Market Committee said Wednesday it will raise rates next month to stimulate the economy and spur investors to invest in the stock markets.