>> Another whipsaw day on Wall Street. Stocks tumbled Thursday, with the Dow falling just over 1,000 points, or 4%, coming on the heels of Monday's stunning drop. The scale of the selloff, setting off all kind of alarm bells. The Dow and the S&P 500 are now 10% below their all time high, set in January.
Meaning stocks are now in what is technically known as a correction. Rising borrowing costs, once again sending a shiver through the markets, as investors brace for an end to the world's central bank's ultra easy money policies, put in place after the financial crisis. Despite the evaporation of trillions of dollars in global stock market wealth in just the past week.
Reuters investments correspondent, David Randall, has spoken to financial advisers who say small time investors aren't hitting the panic button, yet.>> It sounds like most small investors are not that scared. They're kind of looking in their rear view mirror and they see the stock market was up about 19% last year.
They're looking over the last couple years, cuz their money has grown and they don't really see a big reason why there's a big sell off. They see that there are tax cuts, some have benefited from that, they see corporations are going to benefit from that. And they think the economy is doing pretty well, so they say, maybe this is a buying opportunity.
>> That could change, however, as investors watch these stomach churning downfalls day after day. The Bank of England, setting off the latest sell off, after warning interest rates might have to go up sooner rather than later. Higher borrowing costs and higher wages, with an economy at full employment, could both eat into corporate profits down the line.
As the financial landscape shifts, investors have been spending the better part of a week trying to figure out the right value for stocks. And so far, the market has decided it's lower.