Why the Stock Market Just Dropped 600 Points

It’s a turbulent time for Wall Street, as the stock market closed in negative territory on Wednesday after already fluctuating more than 200 points on several days this month.

The Dow Jones Industrial Average tumbled 608 points, or 2.4 percent, wiping out all of the gains it made in 2018. Similarly, the S&P 500 fell just over 3 percent to 2,656 points while the Nasdaq Composite dropped 4.4 percent to 7,108 points.

A number of concerns — including fears over the trade war with China, rising interest rates and the potential decline of a long-term bull market — are said to be driving the sell-off. (Since investors are often spooked by geopolitical uncertainties, news today of several suspicious packages received at multiple locations — including the CNN offices in New York City as well as the homes of former presidents Barack Obama and Bill Clinton — could have stoked fears about terrorism, contributing to the sharp drop.)

Along with the Dow, shoe stocks ended the day in the red, with Foot Locker Inc. down 1.15 percent to $46.48, Wolverine World Wide Inc. dipping 1.73 percent to $34.03 and Steve Madden Ltd. falling 1.22 percent to $28.36.

Sportswear giants Nike Inc. and Under Armour Inc. also saw losses. The Oregon-based brand shed 1.68 percent to $72.12 while the Maryland-headquartered company declined 1.24 percent to $16.74.

Department stores, which have been bearing the brunt of growing digital competition, saw their share of misfortune, as Nordstrom Inc. was in the hole 1.41 percent to $59.28 and Kohl’s Corp. gave up 1.5 percent to $72.21. In the family-footwear sector, DSW Inc. was down 1.62 percent to $25.45.

Another notable drop was Michael Kors Holdings Ltd., which slid 2.76 percent to $56.30. Late last month, the company announced that it had entered into an agreement to acquire Italian luxury fashion house Gianni Versace SpA in a deal worth more than $2 billion.

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