Recently, the Dow Jones industrial average plunged over a thousand points. This plunge creates a volatile environment for financial markets around the world and increases concerns about the durability of the long-running stock gains. This tremendous point drop was the largest intraday point decline in the blue-chip index history. The point drop affects financial markets in Asia, Europe, and the United States, with the primary concern of rising inflation.

Following the Dow Jones Point decline, Asian stocks have also tumbled down. Markets in Australia, Korea, and China have fallen and Japan’s Nikkei stock average has dropped more than six percent, along with Hong Kong’s Hang Seng Index which sank nearly four percent.

The rise of inflation and the point declines of major industrial stocks threaten the campaign promises President Donald Trump and the GOP have made. The point decline raises anxiety among Americans who have noticed retirement savings and household worth increasing. Additionally, people fear that wages and prices are rising faster than expected, the Federal Reserve will fumble its attempts to keep inflation in check. However, if that happens or becomes a risk, the Federal Reserve will raise interest rates, which should dramatically slow the economy or even cause a recession. Another focus on the economy is the 10-year treasury bond. The yields rise toward three percent is widely believed to be a marker for investors to eschew equities for the stability of bonds. Bond yields are rising as the Federal Reserve trims its U.S. bond holdings. The U.S. treasury is borrowing more money partly because of the tax cuts, and issuing more debt tends to raise yields.