Investors were dealt a crushing blow on Monday when the Dow Jones index depreciated for a second day in a row, leaving the Dow 30 in the red.
The industrial index opened at 25,337.87 points today (Monday February 5) before crashing by almost 5 percent to a low of 23,923.88.
The stock markets have not witnessed such drastic losses since the US Congress rejected a $700billion bailout of the banks, post-financial crash, in September 2008.
All 30 of the companies listed on the Dow Index suffered losses ranging from 3 to 5 percent.
The Dow Jones closed at 9pm UK time (4pm EST) at 24,345.75 points, down 4.60 percent.
Here are the latest expert opinions, Dow Jones updates and live forecasts for the US tock market.
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Monday February 5
10.48pm: Analyst warns turbulent periods ahead
A chief economist at Deutsche Bank is certain that the markets are headed for rocky period, but will ultimately weather the storm.
Torsten Slok, said: The allocation of money from risky assets to risk-free assets is going to be bumpy, as seen in markets today.
“Fundamentally, we expect such episodic bouts of turbulence, but the underlying economic expansion will continue."
Meanwhile Quincy Krosby, chief market strategist at Prudential Financial, said: “This sell-off, in the bigger scheme of things, is not that big. But it is very important in psychological terms.”
10.34pm: The markets are ‘re-calibrating’ argues investment analyst
Richard Bernstein, CEO of Richard Bernstein Advisors in New York, said that today’s events are a fine-tuning of the markets.
Mr Bernstein said: “I think what you’re getting is a re-calibration in both the bond and stock markets.
“Nobody can time short-term corrections.
“The question is whether you’re heading for a multi-quarter curl-your-toes market in equities and that’s not on our radar.”
10.24pm: Senior investors urge clients not to panic over Dow crash
Austin Frye, CEO of Frye Financial Center, told his clients that the index crash was overdue and bound to happen sooner or later.
He said: “We have our nervous clients who normally call on pullbacks, and that group is calling.
“We've been talking to them all afternoon.
“I tell them them the market, on average, has a 5% drop twice a year, and that we haven't had one in a year and a half.
“I also tell them that if they buy after a big drop, in the long term, they will never be disappointed."
CNN MONEY
10pm: Stock markets were ‘tipped over the edge’
David Kelly, the chief global strategist for JPMorgan Asset Management argued that the stock markets were pushed over the edge by over-indulgence.
Mr Kelly said: “It's like a kid at a child's party who, after an afternoon of cake and ice cream, eats one more cookie and that puts them over the edge.”
Meanwhile deputy White House Press Secretary Raj Shah, urged investors to remain calm in the wake of the crash.
He said: “Markets do fluctuate in the short term. We all know that. And they do that for number of reasons. But the fundamentals of this economy are very strong and they're headed in the right direction — for the middle class, in particular.”
9.50pm: Dow 30 suffered heavy casualties
All 30 companies listed on the Dow Index are in the red after the stock markets closed in New York.
Exxon Mobil Corp lunged by 5.44 percent, alongside the 3M Company down by 5.60 percent.
Apple and Disney suffered similarly at losses of 2.79 percent and 3.68 percent respectively.
Other major losses were suffered by Boeing Company, down 5.74 percent, and Viagra manufacturer Pfizer Inc, down 5.30 percent.