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by Adam Shell
NEW YORK — Plunge! Rebound! Crash! Rally! Plunge again! That’s been the depressing story line of the stock market the past five trading days, a gut-wrenching, confidence-testing, wealth-destroying bout of volatility that has put investors on edge.
Wall Street has gone haywire again, just as it did in 2008, when stock prices swung sharply up and down like an elevator in a skyscraper during the morning rush. Just as it did on May 6, 2010, when a “flash crash” inspired a short-lived Dow dive of almost 1,000 points. And just as it did on Black Monday in October 1987, when the Dow suffered a record one-day percentage drop of 22.6%.
The signs of the short-circuiting stock market are evident in the unusually sharp price swings recently in the Dow Jones industrial average. Continue reading 7 reasons the stock market is so volatile