The Dow rebounded Friday, closing up more than 300 points. But the index lost about 5 percent for the week as the markets focused on inflation and ballooning government debt.
Wall Street's roller coaster continued Thursday, with all the major stock indexes posting drops of about 4 percent amid inflation concerns. The market has now tumbled 10 percent from its recent peak.
President Trump's top economic adviser Kevin Hassett says that despite recent large drops in the stock market, "the fundamentals for the economy are very sound."
In a volatile trading session, the Dow Jones industrial average rebounded a day after posting its largest point drop in history. Investors regained their focus on a strong economy and robust profits.
The stock market continued to lose ground Monday after Friday's steep drop, with the Dow Jones industrial average down nearly 1,200 points — its worst single-day drop.
Major stock indexes dropped sharply Friday; the Dow Jones industrial average tumbled 2.6 percent amid signs that wage growth is picking up. It was the Dow's worst weekly performance in two years.
Stocks have been rising for years, and they are starting 2018 with another shot upward. The Dow Jones industrial average closed at about 25,000 — the fastest run to a new 1,000-point milestone ever.
Economists and market analysts are optimistic about the outlook for the new year. Most are predicting continued job growth, rising stock prices and healthy profits. But slow wage growth could hurt.