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“ ‘I don’t think we’ve made the lows yet, but it is going to be incredibly choppy.’ ”
That’s economist Mohamed El-Erian, warning investors in a CNBC interview that the stock market’s biggest one-day plunge since 2008 on Monday probably didn’t establish a bottom. El-Erian, chief economic adviser to Allianz, had warned investors early last month that the global coronavirus outbreak could end the market’s longstanding “buy-the-dip” dynamic.
U.S stocks opened with strong gains Tuesday but mostly eliminated the advance by late morning. Bulls were looking for a bounce back from a drop a day earlier that saw the Dow Jones Industrial Average DJIA, +0.76% end more than 2,000 points lower, with both the Dow, S&P 500 SPX, +0.95% and Nasdaq Composite COMP, +1.13% all plunging more than 7% for the biggest one-day percentage decline since 2008.
