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Dow’s 1,000-point pullbacks often precede a weaker next week
Historically, the index has tended to rebound over the next month and three months after those large drops, according to CNBC.
CNBC Markets and CNBC Finance examine what has happened in the periods after the Dow drops by 1,000 points. The outlets say the index has often been weak over the following week.
They also report that while the immediate aftermath is typically soft, the Dow has tended to post gains over the subsequent month and over the next three months.
The takeaway from the historical look is that large, 1,000-point selloffs have not been followed by sustained weakness beyond the near term, with performance improving later in the quarter window.
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