By Jennifer Glickel
DNAinfo Reporter/Producer
WALL STREET — The Dow Jones industrial average tumbled nearly 300 points Tuesday morning before recovering most of the losses and finishing at 10,043.75 by closing bell.
At its nadir, the Dow fell to 9,774.48, its lowest point since November 4 of last year.
Market watchers speculated that Tuesday’s scare was related to events in Europe and Asia, including growing tension between North and South Korea.
On Tuesday, South Korea redesignated North Korea as its "archenemy." In response, the North severed its remaining ties with the South.
"There's been very little news to cause investors to think the market is going to rally against the backdrop of global uncertainty," said Len Blum, managing director at Westwood Capital, according to CNNMoney.
Marc Chandler, the global head of currency strategy for Brown Brothers Harriman & Company, said in a research note “the European debt crisis is not simply a Greek phenomenon,” reported the New York Times.
By the end of the day, however, stocks rallied. There is speculation the rebound came because of comments made by Mass. Congressman Barney Frank.
Frank stated that banks “ought to be able to hedge their own risk,” and said that proposed legislation that would force commercial banks to spin off their derivative businesses "goes too far." The congressman signaled that the provision could be removed from the legislation.
