(ABC News) — The Dow Jones Industrial Average fell more than 500 points at the opening of the New York Stock Exchange on Tuesday, a day after it plunged a record 1,175 points, but the index quickly recouped its losses and entered positive territory.
The Dow was up more than 200 points within the first half-hour of the trading day.
This morning’s initial nose dive came after two consecutive days of negative trading, including a 600 point drop on Friday.
The Dow has lost about 10 percent since reaching a record high of 26,616 on Jan. 26, 2018 — putting it in correction territory.Related Content: Global stocks tumble as Wall Street braces for more losses
The S&P 500 also opened lower but quickly bounced back and was up 16 points just before 10 a.m. The Nasdaq Composite dropped 128 points at the start of the trading day but rallied and was up more than 50 points in the first 30 minutes of trading.
“The stock market is up significantly, over 30 percent since President Trump was elected,” Mnuchin told the committee. “We’re monitoring the stock market. They’re functioning very well and we continue to believe in the long-term impact of the stock market.”Related content: Stocks plummet on Monday, erase 2018 gains
He added that the fundamental economics are very strong and the recent passage of tax reform is “very positive for long-term economic growth.”
“We’re already beginning to see that in terms of corporate investment back in the United States and that impact on corporate earnings,” Mnuchin said.
Randy Frederick, vice president of trading and derivatives for Charles Schwab, told ABC News the fall had been expected after markets hit record highs. He said traders are still jittery about jumping back in.Related content: Stocks go on a wild ride, briefly sending Dow down 1,600
“People need to be a little bit cautious,” Frederick said. “It’s time to sit back and wait because we might not have hit bottom.”