WICHITA, Kan. The Dow Jones industrial average plunged 1,175 points, or 4.6 percent, erasing its gains for the year.
The Dow's drop Monday was its biggest in terms of points, but it had a larger percentage drop as recently in 2011.
The Dow is down 8.5 percent from the record high it hit in late January.
The slump began Friday as investors worried that higher inflation and interest rates could derail the long-running rally.
At one point the Dow was down as much as 1,600 points.
The Dow ended at 24,345.
The Standard & Poor's 500, the benchmark for many index funds, fell 113 points, or 4.1 percent, to 2,648. The Nasdaq fell 273, or 3.8 percent, to 6,967.
Bond prices rose. The yield on the 10-year Treasury fell to 2.73 percent.
Despite the fall, some financial experts say the Dow's recent performance is not something to worry about. A wealth manager who spoke with Eyewitness News Monday points out the stock market is still in pretty good shape.
"We've been looking for a test of this market for about six months. If you're invested in the long term, it really has no long-term effect," says financial expert Mark Douglass.
Two years ago, when the market pulled back 10 percent, Douglass's advice was to stay the course and stick with your plan.
"If you had done that, you'd be up 53 percent from that time period, so this is the same message," he says.
He says the market is strengthening, corrections are normal and long-term investors will be rewarded.
Douglass says interest rates will rise, but that's already expected. He says you could see a short-term impact on your 401-K, but this will actually make it better.
"It's actually a good thing to get a little reality back in the market and let people realize 'okay, that's what it's really about. markets don't move in straight line,'" Douglass says. "They don't always move up, so these kind of activities are good for us to see for investors."