Stock market crash oct 9
Bank lending remained tight as nervous institutions continued to hoard cash. Treasury prices fell, raising their corresponding yields. The dollar gained versus the euro and the yen. Oil, gas and gold prices fell. The Dow Jones industrial average INDU lost points, or 7. It was the Dow's third biggest one-day point-loss ever. The Nasdaq composite COMP lost 5. A key measure of investor fear hit an all-time high: The CBOE Volatility VIX index, or the VIX, hit nearly Over the last seven sessions, the Dow has lost 2, points, or Since hitting an all-time high of 14, Stocks have tumbled despite a series of efforts on the part of the government to unfreeze the credit markets and get money flowing through the system again.
The main focus of the bailout remains buying bad assets from banks. The Fed and Treasury have done many things right, but the markets realize that these programs won't have an impact on the market until six to nine months out, Orlando said. As of Thursday's close, it was down The Nasdaq has never come close to its record of 5, But after hitting a six-year high of 2, Stocks had slumped throughout the year, but the selling accelerated in September following a series of bank failures and mergers.
After the close of trade Thursday, Citigroup said it failed to reach a deal with Wachovia.
Citi said that although it will seek damages, it won't block a Wachovia WB , Fortune -Wells Fargo WFC , Fortune merger. GE is due to report earnings Friday. In addition, President Bush is expected to make a statement in the morning, telling investors that economic officials are doing everything they can to stabilize our financial system.
IBM IBM , Fortune 's better-than-expected earnings had lifted tech stocks in the morning, but even Big Blue got dragged down in the afternoon slump. Oil services stocks slumped in tune with a slide in oil prices. GM, IBM, Chevron and Exxon are all Dow components.
All 30 Dow stocks fell.
Stock Market Crash October ? 9 of the 16 Largest Crashes in History Have Come This Month — Charisma News
Other big Dow losers included financial components Bank of America BAC , Fortune , Citigroup C , Fortune and JP Morgan Chase JPM , Fortune In short-selling, traders place bets that a stock will fall. The SEC banned the shorting of nearly financial stocks after critics said it added to the accelerated bloodletting in financial stocks in the summer and early fall. Amid the ongoing crisis, lending has dried up, making it difficult for businesses to function on a daily basis and for consumers to get loans.
In an effort to get money moving again, the government has taken a number of dramatic steps, including announcing an emergency interest-rate cut Wednesday, coordinated with banks around the world.
Earlier in the week, the Fed said it will buy short-term debt needed to finance daily operations directly from businesses. A Federal Reserve report Thursday showed that the market for commercial paper continued to shrink in the last week. Libor, the overnight bank lending rate, eased to 5. However, the levels were still high considering that Libor was at 2.
Three-month Libor, or what banks charge each other to borrow for three months, rose to 4.
Wall Street Crash of - Wikipedia
The TED spread, the difference between what banks pay to borrow from each other for three months and what the Treasury pays, spiked to an all-time high of 4. The wider the spread, the more reluctant banks are to lend to each other, rather than from the federal government.
When markets are fairly calm, banks charge each other premiums that are not much higher than the U.
The yield on the 3-month Treasury bill, seen by many as the safest place to put money in the short term, fell to 0. Treasury prices slipped, raising the yields. Treasury prices and yields move in opposite directions.
On the economic front, weekly jobless claims edged off a seven-year high, but they still outpaced forecasts. Prices slipped on continued bets that the slowing global economy will hurt demand.
The price of gas decreased for the 22nd consecutive day, according to a survey of credit card activity by motorist group AAA.
In currency trading , the dollar gained against the euro and the yen. Worried about your retirement? Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. FactSet Research Systems Inc. Certain market data is the property of Chicago Mercantile Exchange Inc. A Time Warner Company.
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Stock market crash - Wikipedia
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