Stock Market's Big Selloff Calls for Calm, Context
Investors are left feeling antsy after the Dow Jones industrial average tumbled more than 1,000 points on Monday.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Wall Street's woes are far from over.
What Happened in the Stock Market Today?
An early recovery on Monday, Feb. 5, deteriorated into deep losses that were likely exacerbated by computerized trading that at one point sent the Dow tumbling below 24,000. By the close, the industrial average was off 4.6% to 24,345 -- good for an 8.5% decline from the Jan. 26 closing high of 26,616 and putting the Dow into negative territory for the year. On a points basis, the 1,175-point decline was the largest in market history.
After a stomach-churning day like this, some context helps. Consider this: The S&P 500 index, which is off about 8% from its high, has recorded its first 5% pullback in 406 trading sessions -- the longest such streak without a 5% retreat in the history of the index. The second-longest stretch (394 sessions) was more than 20 years ago. That means 5% declines are actually common, and far from a cause for panic. Throw in the fact that stock valuations were near historic heights, and that even technical charts showed the market as overheated, and that's a perfect recipe for the kind of pullback we're experiencing right now.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Translation: Don't be scared yet, but do be prepared. In times of market tumult, investors often pile into utility stocks for safety and stability, not to mention their sizable dividends. To wit, the Utilities Select Sector SPDR Fund (XLU) suffered the smallest losses of any of the SPDR sector funds. For a little more diversification than single stocks, investors can look to ETFs that hold up better than others (and can even profit) during bear markets. But perhaps the most important thing investors can do right now is keep their heads amid the day's admittedly dour headlines. Instead, learn what you need to know about bear markets -- what they are, and how they happen -- before the next one arrives in Kiplinger's Bear Market Quiz.
-
Dow Leads in Mixed Session on Amgen Earnings: Stock Market TodayThe rest of Wall Street struggled as Advanced Micro Devices earnings caused a chip-stock sell-off.
-
How to Watch the 2026 Winter Olympics Without OverpayingHere’s how to stream the 2026 Winter Olympics live, including low-cost viewing options, Peacock access and ways to catch your favorite athletes and events from anywhere.
-
Here’s How to Stream the Super Bowl for LessWe'll show you the least expensive ways to stream football's biggest event.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
