Wall Street Takes A Pounding: Dow Closes Down 634 Points

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Stocks took a sharp nosedive in another choppy day Monday to finish at session lows as investors fled from risky assets following S&P’s downgrade of U.S.’s credit rating last week in addition to ongoing economic jitters.

The Dow Jones Industrial Average plunged well-below the psychologically-significant 11,000 mark.

The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that for some recalled the days of the 2008 financial crisis. They also reflected anxiety over the United States economy and Europe’s debt woes.

At the close of trading, the Standard & Poor’s 500-stock index was off more than 6 percent, coming after a 7 percent loss over the course of last week. The Dow Jones industrial average showed a one-day decline of more than 600 points, its steepest point loss in a single day since December 2008. The Nasdaq dropped nearly 7 percent.

The benchmark 10-year Treasury yield fell to 2.35 percent, the lowest since January 2009. The yield was 2.56 percent on Friday.

(Source: NY Times)




6 COMMENTS

  1. The son of Esauv “Killed” Yaakov Avinu by taking all his money and clothes. Midah Keneg Midah, may H”B usher in the fall of Esauv and rise of Yaakov with the coming of Moshiach.

  2. The “downgrade” claims that Treasury bonds are not good investments – so the response of the market is to by more Treasury bonds, and to force the interest down. This suggests that the “downgrade” had little to do with the decline, and perhaps one should look at the situation in Europe or the failure of the US economy to produce growth.