Worst day in recent economy for US
Posted: Tue Sep 30, 2008 7:38 pm
Opening of the black monday :twisted:
WTG!!!!!!
source: http://www.nasdaq.com/reference/200809/ ... 092908.stm
Another Black Monday for Wall Street
Major indexes suffered their biggest percentage declines since the 1987 crash as the government's bailout plan was defeated Monday
by Will Andrews and Karyn McCormack
Wall Street was pinning its hopes on the government's $700 billion financial system rescue plan. But the fervently wished-for bailout was rejected Monday by the House of Representatives in a stunning turn of events, and investors reacted with a vengeance. Major U.S. stock indexes plummeted Monday in one of their worst sessions ever.
The ugliness was widespread, with major indexes posting their worst percentage declines since the 1987 stock market crash. The Dow Jones Industrial average tumbled almost 7%, the S&P 500 sank 8.8%, and the Nasdaq plunged a jaw-dropping 9.1%. The Dow suffered its largest point drop in history.
Biggest Point Drops in the Dow
Date Close Point Drop Percent Decline
Sept. 29, 2008 10,365.45 777.68 -6.98%
Sept. 17, 2001 8,920.70 684.81 -7.13%
Apr. 14, 2000 10,305.77 617.78 -5.66%
Oct. 27, 1997 7,161.15 554.26 -7.19%
Aug. 31, 1998 7,539.07 512.61 -6.37%
Oct. 19, 1987 1,738.74 508.00 -22.61%
On Monday, the blue-chip Dow Jones industrial average fell 777.68 points, or 6.98%, to 10,365.45. The broader S&P 500 index dropped 106.62 points, or 8.79%, to 1,106.39. The tech-heavy Nasdaq composite index tumbled 199.61 points, or 9.14%, to 1,983.73. According to Bloomberg News, $1.2 trillion was knocked off the value of American securities.
Activity in the broader market was overwhelmingly negative. On the New York Stock Exchange, 31 stocks fell in price for every one that gained. The ratio on the Nasdaq was 25-4 negative.
Bonds soared amid the chaos in equities. The dollar index climbed. Crude oil futures sank, while gold futures rose.
The House defeated the bailout measure, which had been crafted by the White House and legislative leaders over the weekend, by a vote of 226-207. The news, which took many investors by surprise, drove the Dow down over 700 points during the session as disappointed investors fled to the safety of Treasury bonds and gold. Other major indexes followed suit and posted outsized losses.
The rescue plan, as agreed to by lawmakers and the White House over the weekend, would use taxpayer money -- $350 billion initially, and up to $700 billion with Congressional approval -- to buy mostly soured mortgage-backed securities from Wall Street firms and banks. By taking these securities off the banks' hands, the bailout plan seeks to restore confidence in the financial system and ensure that banks can still carry on their fundamental role of handling payments and offering credit to the masses.
House members were expected to head back to the negotiating table, though it appeared unlikely that there would be a second vote Monday. Regardless of the outcome, the world appears headed for a recession with the global banking system in convulsions, says S&P MarketScope.
"Today Congress managed to snatch defeat from the jaws of victory and shareholders voted with their feet ... as we moved toward the close of trading volume increased and there was an air of desperation," says Michael Farr, president of investment firm Farr, Miller & Washington LLC in Washington D.C. "The rule is that markets top on irrational exuberance and bottom on fear and panic. The problem is, those emotions can last for a while."
http://www.businessweek.com/investor/co ... _top+story
WTG!!!!!!
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About this Marketsite Event:
Gonzalo Fernandez, Uruguay Minister of Foreign Affairs, presides over the NASDAQ Opening Bell. Joining Minister Gonzalo Fernandez is NASDAQ OMX President Magnus Bocker.
Another Black Monday for Wall Street
Major indexes suffered their biggest percentage declines since the 1987 crash as the government's bailout plan was defeated Monday
by Will Andrews and Karyn McCormack
Wall Street was pinning its hopes on the government's $700 billion financial system rescue plan. But the fervently wished-for bailout was rejected Monday by the House of Representatives in a stunning turn of events, and investors reacted with a vengeance. Major U.S. stock indexes plummeted Monday in one of their worst sessions ever.
The ugliness was widespread, with major indexes posting their worst percentage declines since the 1987 stock market crash. The Dow Jones Industrial average tumbled almost 7%, the S&P 500 sank 8.8%, and the Nasdaq plunged a jaw-dropping 9.1%. The Dow suffered its largest point drop in history.
Biggest Point Drops in the Dow
Date Close Point Drop Percent Decline
Sept. 29, 2008 10,365.45 777.68 -6.98%
Sept. 17, 2001 8,920.70 684.81 -7.13%
Apr. 14, 2000 10,305.77 617.78 -5.66%
Oct. 27, 1997 7,161.15 554.26 -7.19%
Aug. 31, 1998 7,539.07 512.61 -6.37%
Oct. 19, 1987 1,738.74 508.00 -22.61%
On Monday, the blue-chip Dow Jones industrial average fell 777.68 points, or 6.98%, to 10,365.45. The broader S&P 500 index dropped 106.62 points, or 8.79%, to 1,106.39. The tech-heavy Nasdaq composite index tumbled 199.61 points, or 9.14%, to 1,983.73. According to Bloomberg News, $1.2 trillion was knocked off the value of American securities.
Activity in the broader market was overwhelmingly negative. On the New York Stock Exchange, 31 stocks fell in price for every one that gained. The ratio on the Nasdaq was 25-4 negative.
Bonds soared amid the chaos in equities. The dollar index climbed. Crude oil futures sank, while gold futures rose.
The House defeated the bailout measure, which had been crafted by the White House and legislative leaders over the weekend, by a vote of 226-207. The news, which took many investors by surprise, drove the Dow down over 700 points during the session as disappointed investors fled to the safety of Treasury bonds and gold. Other major indexes followed suit and posted outsized losses.
The rescue plan, as agreed to by lawmakers and the White House over the weekend, would use taxpayer money -- $350 billion initially, and up to $700 billion with Congressional approval -- to buy mostly soured mortgage-backed securities from Wall Street firms and banks. By taking these securities off the banks' hands, the bailout plan seeks to restore confidence in the financial system and ensure that banks can still carry on their fundamental role of handling payments and offering credit to the masses.
House members were expected to head back to the negotiating table, though it appeared unlikely that there would be a second vote Monday. Regardless of the outcome, the world appears headed for a recession with the global banking system in convulsions, says S&P MarketScope.
"Today Congress managed to snatch defeat from the jaws of victory and shareholders voted with their feet ... as we moved toward the close of trading volume increased and there was an air of desperation," says Michael Farr, president of investment firm Farr, Miller & Washington LLC in Washington D.C. "The rule is that markets top on irrational exuberance and bottom on fear and panic. The problem is, those emotions can last for a while."
http://www.businessweek.com/investor/co ... _top+story