Stock Market Takes a Dramatic Dive

What is behind the worst day on Wall Street since February and what it means for jobs and the economy.
1:32 | 07/31/14

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Transcript for Stock Market Takes a Dramatic Dive
Now back here at home, that dramatic dive on the stock market today, the worst day on Wall Street since February, an entire month of gains erased in hours. The Dow down more than 300 points. ABC's chief business correspondent Rebecca Jarvis spent the day talking to her sources and Wall Street veterans to tell us what this signals about the economy and your finances. Reporter: It's been a solid run, the establishing climbing most of the year, but not today. That 317-point plunk making July the worst month for stocks since January. Here's happening, the American economy is improving and salaries are rising. But that has Wall Street worried that the federal reserve is about to stop helping out and will soon hike record low interest rates for the first time in over five years. So where do your retirement savings stand? After today's selloff, the typical family 401(k) Is down about $94 for the year. But take a bigger step back and look at the same account since the financial crises, and you're up more than $70,000. But again, the headline tonight is the Dow is now down for the year, so where did those hard-earned retirement savings go from here? Tomorrow's jobs report will be a decisive factor. I've been talking to my source all over Wall Street and say they will be watching that report at 8:30 tomorrow morning with a keen eye. Thank you Rebecca. Good to have you on the story tonight.

This transcript has been automatically generated and may not be 100% accurate.

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