Dow Dives: What Has Investors Freaking Out?

The bears are back.

Since the Jan. 19 market close, the Dow Jones Industrial Average has lost more than 750 points, nearly 7% of its value. The selloff culminated Thursday in a 268-point drop, which brought the index to its lowest point since Nov. 4. Now, the index stands below 10,000, a key psychological benchmark.

Of course, the Dow is just one measure of the market, and its 30 components are more representative of blue chips. However, over the same period, the broader S&P 500 index has plummeted more than 7.6% and the tech-heavy Nasdaq Composite has dropped more than 8.4%.

What’s going on here? Many market watchers had been expecting a pullback since the better part of last year, but to many, this recent market turn feels like a surprise. In mid-January, everything seemed to be going OK.

“I think the magnitude isn’t necessarily a huge surprise,” says Richard Sparks, senior equities analyst at Schaeffer's Investment Research. “I’m surprised by the quickness,” he says.

Then again, it’s been a busy a stretch. Since the market began heading south, traders have seen a public scolding of the financial system, heard threats of new regulation and watched the employment situation grow arguably worse.

Here’s a look at five key factors that weighed on traders during the latest pullback.