The market’s rout has been accelerating since the financial crisis and has now hit its highest point since the late 1990s, as investors grapple with what they see as a more fundamental challenge to the system.
In a sign that the turmoil is deepening, the S&P 500 index is down 2.5% since Friday, its biggest percentage plunge in more than two weeks.
And while it has rallied nearly 10% since Thursday’s session, the market is in a tailspin.
The Dow Jones industrial average is down 1,400 points, or about 6%, while the S.&.;P 500 is down 523 points, the worst performance since May 2011, according to FactSet.
This is the biggest one-day drop in more that three months.
On Wall Street, the Dow is down more than 4% since trading started.
The S. & P 500 is up 1.7%.
The biggest gainers in the stock market have been the tech sector, where the Nasdaq Composite is up 4.3% in the past week, and technology stocks such as Apple, Google and Facebook.
But in a sign of how badly the market has fallen, the Nasco stock index is now down 8% over the past two months.
The index is up about 30% since its last low in early August, and has risen about 30 points since then.
Many experts are skeptical that the market can recover, with one strategist saying the economy is so weak that “we’re going through some rougher times.”
Meanwhile, the markets are also seeing the impact of a broader global slowdown.
Economists say a major slowdown in China, where manufacturing is key to the country’s economy, has been a factor in the market’s fall.
For now, the Federal Reserve is expected to cut interest rates for the first time since mid-2013.
It is also unlikely to raise them in September, and its actions could take longer than expected, economists said.
Meanwhile the Federal Open Market Committee, which meets Monday to consider rate hikes, is set to hold off on a move to raise rates by a further 0.25 percentage point until at least the middle of next year.
Investors also are worried about the Federal Communications Commission, which last week adopted new rules to prevent Internet providers from blocking access to sites deemed harmful to consumers.
A move to reinstate net neutrality rules, which protect consumers from blocking, throttling or throttling services, is expected in the coming days, as are other regulatory moves.
Despite the market turmoil, there is optimism among many market watchers that the economy will continue to grow in the second half of the year.
Analysts surveyed by Bloomberg News expected gross domestic product to grow by a faster-than-expected 0.1% in 2018.
If that trend continues, the economy would be bigger than it was a year ago.
That growth would add up to about 3.8% growth this year, according a Bloomberg New Energy Finance estimate.