The sudden stock market drop of February 2018 took many investors by surprise. The U.S. Dow fell 7%. Other world markets also tumbled: Japan’s Nikkei by 4.7%; Hong Kong stocks, 5.1%; and London’s FTSE 100, nearly 2%.
One day after the notorious plunge, the market surged 381 points, but by close of the same day, the increase had disappeared.
The wild ride had some investors and leading economists contemplating the deeper significance of the market fluctuation. Was this a prelude to darker financial times? Was all the good news about the economy merely just a lot of monetary smoke
The short answer to all those questions: This appears to be a mere—although meaningful—blip on the historical radar.