The Stock Market Correction
On October 27, the S&P 500 index plummeted 64.62 points, a percentage loss of 6.86%. This was the largest point drop in a single day, and the seventeenth largest percentage drop since the S&P index started in 1926. The chart showing the high, low, open, and close levels of the index reveals that the market dropped for three business days prior to October 27. The date of the correction also stands out because, in contrast to the ups and downs of the usual day, the high point was at the opening bell and the low point was insignificantly different from the close. The following day showed a large gain, despite early losses.
Suggested citation: “The Stock Market Correction,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-11, pp. 07, 11.01.1997.