Spring Break
U.S. stocks fall again, following plunge in Asia, Europe
Kevin G. Hall and Dion Nissenbaum - McClatchy NewspapersIssue date: 10/9/08 Section: Real News
WASHINGTON - Wall Street crossed another grim milestone Friday morning shortly after the opening bell of the New York Stock Exchange, with the Dow Jones Industrial Average falling almost 700 points to fall below the psychological threshold of 8,000 before stabilizing. Markets had plunged overnight in Asia and Europe.
Opening down sharply after seven consecutive days of steep losses, the Dow resumed the freefall, down more than 20 percent down over the past eight trading sessions in what has been a snowballing process. Within a half hour, the Dow bounced back but was still trading 200 points down in what was sure to be another volatile day.
Friday marked a stock sell-off around the world, as Asian markets suffered steep losses. Japan's Nikkei fell another 9.6 percent at the close of trading to lose a quarter of its value this week. Hong Kong's exchange was down 7.2 percent and Australia's down 8.3 percent.
Asia's plunge migrated to Europe, where stocks slumped in early trading. The exchanges in Britain, France and Germany were off by a respective 5.4 percent, 6.1 percent and 7.9 percent. Austria temporarily halted trading after the stock exchange fell by more than 10 percent.
"There is no safe haven," said Evariste Lefeuvre, an economist with the French investment bank Netixis, told the BBC.
President Bush came before the cameras Friday morning in a bid to calm both nervous citizens and jittery markets.
"We are a prosperous nation with immense resources and a wide range of tools at our disposal," Bush said, seeking to reassure Americans who have seen their retirement savings shrink and wonder how safe their money really is in the bank.
Bush offered no new solutions, but reminded of the wide range of steps taken in recent weeks by the Federal Reserve and Treasury Department.
"Fellow citizens, we can solve this crisis, and we will," he said.
The drops over the past week of trading are nearing the faster two-day 25 percent drop in 1929 that is widely viewed as the trigger to the Great Depression. The Federal Reserve and Treasury have taken a number of aggressive steps to avoid repeating the same mistakes of the last century, but some analysts believe a more coordinated approach between developed nations is needed.
Opening down sharply after seven consecutive days of steep losses, the Dow resumed the freefall, down more than 20 percent down over the past eight trading sessions in what has been a snowballing process. Within a half hour, the Dow bounced back but was still trading 200 points down in what was sure to be another volatile day.
Friday marked a stock sell-off around the world, as Asian markets suffered steep losses. Japan's Nikkei fell another 9.6 percent at the close of trading to lose a quarter of its value this week. Hong Kong's exchange was down 7.2 percent and Australia's down 8.3 percent.
Asia's plunge migrated to Europe, where stocks slumped in early trading. The exchanges in Britain, France and Germany were off by a respective 5.4 percent, 6.1 percent and 7.9 percent. Austria temporarily halted trading after the stock exchange fell by more than 10 percent.
"There is no safe haven," said Evariste Lefeuvre, an economist with the French investment bank Netixis, told the BBC.
President Bush came before the cameras Friday morning in a bid to calm both nervous citizens and jittery markets.
"We are a prosperous nation with immense resources and a wide range of tools at our disposal," Bush said, seeking to reassure Americans who have seen their retirement savings shrink and wonder how safe their money really is in the bank.
Bush offered no new solutions, but reminded of the wide range of steps taken in recent weeks by the Federal Reserve and Treasury Department.
"Fellow citizens, we can solve this crisis, and we will," he said.
The drops over the past week of trading are nearing the faster two-day 25 percent drop in 1929 that is widely viewed as the trigger to the Great Depression. The Federal Reserve and Treasury have taken a number of aggressive steps to avoid repeating the same mistakes of the last century, but some analysts believe a more coordinated approach between developed nations is needed.
Be the first to comment on this story