Nightly News   |  June 20, 2013

‘Choppy waters’ as stock market slumps

The stock market continued to dip on Thursday, one day after Federal Reserve chairman Ben Bernanke warned interest rates may rise. The so-called ‘buy on the dip mentality,’ however, may help stocks rally on Friday.  CNBC’s Maria Bartiromo reports.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> good evening, this was the worst day of the year on wall street , and unlike other dips and dives in the stock market , the reason for what happened today was pretty clear. it was the nation's top money man, the chair of the federal reserve , who just yesterday gave a mostly positive review of the economy. but also in there was a warning that cheap borrowing may be coming to an end. that was the back drop and today the people who buy and sell stocks for a living, chose to sell, and the numbers went down. in a moment, we'll talk about how homeowners are watching this closely. let's go to where the damage was done, maria bartiromo on wall street in new york.

>> reporter: hi, brian. good evening to you. at this point, everybody has gone home at the new york symptom stock exchange . today's 350-point sell-off comes after yesterday's 200 huf point sell-off, as the federal reserve suggested winding down of the stimulus will begin at the end this year. why is that such a bad thing? once the stimulus goes away, interest rates begin to creep up, take money out of stock market and into fixed income, into bonds. while i keep my money into the stock market which is riskier, and the bond market is a bit safer. that is the thinking. i don't think interest rates will skyrocket out of control and we're down about 5%. 4.8% from the all-time highs in the market, reached in may. every time we've seen a sell-off of 5%, a lot of people expecting a correction of 5%. each time we've seen that, that selling has been met by buyers, the so-called buy on the dip mentality. i suspect we'll see a buy on the dip mentally once again, unclear if that happens tomorrow or later. looks like we'll be into choppy waters the next couple of weeks, brian.

>> mariairobartiromo, where the damage occurred.