Transcript for Dow is now down 10% from its high in January
And as the white house was riding out this latest storm, traders on Wall Street were riding out the latest plunge in the Doug. The Dow losing more than 1,000 points today, sinking below 24,000, down 10% in two weeks. That's what's considered an official correction now. But with unemployment low and a strong economy, what's really behind this? And what does it mean for your retirement, your 401(k)? ABC's Linzie Janis tonight at the New York stock exchange. Reporter: The look on their faces says it all. Anxious traders on Wall Street as the Dow closed more than 1,000 points lower. Coming on top of Monday's massive selloff, the largest one-day drop in history, the Dow is now down 10% from its high in January. That's considered an official correction. Tonight, investors tell ABC news the fast and furious selloff is actually about anxiety the economy is doing too well too quickly. And fears the federal reserve may have to hike rates more aggressively this year in order to keep inflation under control. The real season is that we get good news, it suggests that maybe our economy might be overhe overheating. Reporter: The president tweeting after Monday's losses. "In the old days, when good news was reported, the stock market would go up. Today, when good news is reported, the stock market goes down. Big mistake." Tonight, some economists also say the president's tax cuts could actually be adding to all of this, by stimulating an already improving economy. And the question, who pays for those cuts later on? Still, if you put $1,000 in a 401(k) One year ago, the average investor would still be up about 12%, meaning that would now be worth about $1,125. Linzie Janis keeping it in perspective there for us. She's on the floor of the new York stock exchange tonight. And investors are saying this might be here to stay? Reporter: That's right, David. Many telling us this correction is a reality check, that rock bottom interest rates may be over. And when interest rates move higher, stocks can often move in the opposite direction. David? We do know that. Linzie Janis, thank you. There's also developing
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