On Tuesday morning, Wall Street traders woke up to something they haven’t experienced much of lately: actual market volatility. One trader posted an image of his Bloomberg terminal at the market opening (re-posted here), which showed an immediate scary-looking plunge in U.S. equities as the opening bell rung. By the end of the day, American stocks were down more than one percent, the worst one-day loss since last August, and capping the largest two-day loss since last May.
What’s going on? Are U.S. stocks really a full percentage point less valuable today than they were yesterday morning?