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Dow drops 1,000 points, history shows a pattern of follow-through

CNBC's analysis says the typical post-drop week is weak, while gains tend to show up over the following month and three months.

Reported · Written up by our desk · Fund Industry

CNBC Markets and CNBC Finance examined past episodes when the Dow fell by 1,000 points, focusing on how the index behaved afterward. The outlets found that after a 1,000-point decline, the Dow has historically tended to trade weakly over the next week.

They also reported that while the immediate aftermath is often soft, the index has historically posted gains over the next month and over the subsequent three months.

The takeaway is that, based on the historical pattern, a large one-day drop has not been followed by sustained weakness in the longer windows that follow.

Latest closeDow Jones 51,594.14 ▼2.2%

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