Dow Jones plummets 7%, a record 777 points

September 30th, 2008 - 10:03 am ICT by Amrit Rashmisrisethi  

Dow Jones plunged 777.68 points or 7% this morning (September 30 Thai time), the biggest one-day point drop in the 102-year Dow’s history and the biggest percentage decrease since trading resumed after the 9/11 terror attacks the US in 2001, after the U.S. House of Representatives voted down a $700 billion rescue plan for Wall Street, leaving the US ailing financial industry and perhaps the broader U.S. economy in renewed jeopardy.

The Dow is down 9.3% since crisis erupted a few weeks ago on Wall Street following the meltdown of US’ fourth largest investment bank Lehman Brothers Holdings.

(Agencies) The financial bailout plan failed 206-227 in the US House, despite impassioned debate on the floor and urging for action from US President George W Bush.

The Dow Jones Industrial Average plummeted this morning (September 30 Thai time) 777.68 points, or 7%, to 10,365.45, hurt by declines in all 30 of its components. It was the biggest one-day point drop in the 102-year history of the Dow and the biggest percentage decline since trading resumed after the 9/11 terror attacks in 2001.

The bailout’s failure throws into limbo the prospects for a US federal intervention that the White House and many financial-industry veterans believe is necessary to alleviate the burden of soured credit bets lingering on many banks’ books. Those instruments have clogged Wall Street’s usual financing activities for months and, in a worst-case scenario, could lead to an even more intractable freeze-up that would deal a severe blow to the broader economy.

“There is a panic mentality afoot today,” said Bruce Bittles, chief investment strategist at Robert W. Baird.

The S&P 500 plummeted 8.8%, its biggest one-day drop in percentage terms since the 1987 Black Monday market crash. The broad measure shed 106.59 points to end at 1106.42. All of the S&P’s sectors ended lower, led by a 13.2% slide in its financial category.

The small-stock Russell 2000 tumbled 6.7%, or 46.94 points, to 657.85. The technology-focused Nasdaq Composite Index fell 9.1%, or 199.61 points, to 1,983.73.

Source : National News Bureau, Public Relations Department of Thailand

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