WASHINGTON- The collapse shaved 4.6 percent off the index, which representsa price-weighted average of 30 blue-chip American stocks that are generallythe leaders in their industry, RT reported.

The Dow also set an intra-day record drop of 1,600 points and at one pointfell 800 points in a span of just 10 minutes.

The previous record drop in points took place on August 24, 2015, when theDow plunged 1,089 points during the trading session.

The biggest decline in percentage terms was on May 6, 2010, when the “flashcrash” resulted in more than a 9 percent fall.

Monday’s drop erased all gains by the Dow this year, with the index down1.51 percent since January 1.

“A lot of people who have been in this market for the past three or fouryears have never seen this before,” Dennis Dick, a proprietary trader atBright Trading LLC in Las Vegas said, as quoted by Reuters.

“The psychology of the market changed today. It’ll take a while to get thatpsychology back,” Dick added.

Bulls are saying that strong US corporate earnings, including a boost fromPresident Donald Trump’s tax cuts, will result in the continued growth ofUS stock indices.

Bears are expecting a market decline, saying it is over-stretched becauseof rising bond yields as central banks withdraw their easy money policiesof recent years.

Markets across the world followed the US decline. During Tuesday’s trading,the Chinese Shanghai composite index plunged 3.35 percent, Japan’s Nikkeiclosed almost 5 percent down, key Western European indices fell almost 2percent; Russia’s dollar-denominated RTS index was down 1.82 percent.

The turmoil on the US markets may deepen as Dow futures slipped by 400points, or 1.7 percent, on Tuesday morning. They were down 800 pointsearlier.