On "Black Monday" in October 1929, the Dow Jones industrial average tumbled 12.8 percent, and the next day, "Black Tuesday," it sank another 11.7 percent. The crash of 1929 took the market down 23 percent in just two days and nearly 30 percent over six days that fall.That was a major move.
Things would get even worse. By July 1932 the market had plummeted almost 90 percent.
Now consider some more recent history.
In midmorning trading, the Dow Jones industrial average rose 237.19, or 2.29 percent, to 10,602.64 after falling more than 777 points, or nearly 7 percent, Monday to its lowest close in nearly three years. It was the blue chips' largest point drop and 17th largest percentage drop. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987Do you remember the Great Depression of 1988? Neither do I, and I do remember Black Monday, 1987. I never saw so many grown men cry.
And after Black Monday, 1987, the market didn't come back the next day. It took at least a few weeks, and most people who were going to make money (I wasn't in options market betting on the market downturn) didn't make their money until February of 88. But that's another story.
Are things in a bad way? Probably. Has the economy ground to a halt? No.