Dow below 9,000; worst day since 1987

Good Morning friends,
I was reading on international financial condtion and word stock market. I read Dow below 9,000; worst day since 1987. Yesterday was the worst day at Dow Jones. The Dow and the benchmark S&P 500 suffered their worst one-day per centage drops since 1987.

Wall Street had its worst day since the 1987 stock market crash on Wednesday, as bleak economic data fed worries that all the efforts to unlock credit markets may not stave off a severe recession.

Federal Reserve Chairman Ben Bernanke added to those concerns when he said the economy faced a “significant threat” from paralyzed credit markets. Dismal monthly US retail sales set the tone for the session, dropping the most in more than three years, while a measure of New York state manufacturing hit its lowest level since the index started in 2001.

The Nasdaq has now wiped out all of its gains from Monday’s 11 per cent rally, while the benchmark S&P 500 is up only about 1 per cent from Friday’s close.

Wednesday’s data intensified recession fears, as did the Federal Reserve’s Beige Book report, which showed economic activity, weaken across the United States in September as businesses revised capital investments and consumers curtailed spending.

Shares of companies considered economic bellwethers, such as industrial conglomerate Caterpillar Inc, fell sharply. Caterpillar’s shares slid over 11 per cent. Fears of recession knocked commodities lower, with Exxon Mobil tumbling 14 per cent as the price of oil fell.

“Retail sales spooked investors this morning and has increased the near-term risk of a broad-based recession,” said Tom Sowanick, chief investment officer at Clearbrook Financial LLC in Princeton, New Jersey.

The Dow Jones industrial average slid 733.08 points, or 7.87 per cent, to 8,577.91, while the Standard & Poor’s 500 Index tumbled 90.17 points, or 9.03 per cent, to 907.84.

The Nasdaq Composite Index sank 150.68 points, or 8.47 per cent, to 1,628.33. The broad Dow Jones Wilshire 5000 closed down 905 points, or 8.99 per cent, at 9,160.43, representing a paper loss for the day of approximately $1.1 trillion.

Yahoo news, guaranteedblinds, agentswebworld

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