Dow Jones plunges more than 1100 points

Photo: NYSE
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(NEW YORK) --- The Dow Jones Industrial Average dropped approximately 1,175 points on Monday. This is the largest one-day point loss in history but is not the largest percentage drop.

The Dow Jones industrial average plunged 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.

With contributions from the Associated Press.