Stocks close down 199 as lawmakers remain at odds over debt
Dow drops 1.6 percent The biggest evidence yet that investors are concerned about keeping their money safe: they're selling stocks of small companies. Ref. USAToday
The Dow closed down about 266 points, or 2.19%, as investors worried about the weak economy.
The selloff pushed the S&P 500 into negative territory for the year.
"Now that we have solved the debt ceiling issue, the market has moved on to the other data, which has taken a significant turn for the worse," said Ryan Detrick, senior technical strategist with Schaeffer's Investment Research.
The Dow suffered an eighth straight day of declines for the first time since October 2008, when the financial system was in the depths of a crisis. The Dow also finished below the psychologically important 12,000-point mark. Ref. CNN
Dow snapped an eight-day losing streak Wednesday. But the gains lacked conviction as worries about the state of the global economy continued to weigh on investors" minds.
The Dow gained about 29 points, or .3 percent to close at about 11,896.21. The S&P 500 managed to move back into positive territory for the year, albeit barely, gaining 6 points, or 0.5 percent to close at 1,260.38. The tech-heavy Nasdaq also managed to eke out gains and remains up 1.5% for the year after gaining 24 points, or 0.9 percent to 2,693.07.
Investors remain spooked by a series of weak economic reports as they put the debt ceiling worries behind them and look ahead to Friday's all-important monthly jobs report. A report from outplacement firm Challenger, Gray & Christmas on Wednesday showed planned layoffs at a 16-month high. The spate of bad news is creating a heightened sense of worry that the global recovery could stall. Ref. CNN
Stocks suffered the worst sell-off Thursday since the 2008 financial crisis. The Dow plunged more than 500 points on fears of a global economic slowdown.
U.S. Markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets.
All three major indexes tumbled more than 4% Thursday and erased all their gains for the year. The indexes have also pushed into 'correction' territory - defined as a 10% drop from their highs earlier this year. Over the past 10 days alone, the Dow, S&P 500 and Nasdaq have dropped about 8 percent Ref. CNN
U.S. Stocks plunged at the open Monday as Wall Street had its first opportunity to react to Standard & Poor's downgrade of U.S. Debt.
At the open, the Dow Jones industrial average was down 184 points, or 1.6%; the S&P 500 lost 30 points, or 2.5%; and the Nasdaq Composite dropped 82 points, or 3.2%.
Late Friday, S&P downgraded the United States' credit rating by one notch to "AA ", removing the world's largest economy from the Triple A-club for the first time in history.
Economists and investment strategists said an initial shock is not surprising - global markets plunged on the news as well - but emphasized that the downgrade itself should not impact markets too much. Ref. CNN
In what is shaping up to be an erratic trading day, the Dow has dropped below 3% in early trading after the latest news that Standard & Poor's downgraded the debt of mortgage finance giants Fannie Mae and Freddie Mac.
It was widely expected that S&P's downgrade of U.S. Debt would roll downhill to other entities that are closely linked to the federal government.
Fannie and Freddie, which were taken over by the government in 2008, fuel home sales by purchasing mortgages from banks.
It's not clear what - if any - effect the downgrade will have on Fannie and Freddie's borrowing costs. And since Treasury yields remain at very low levels, a sharp spike in mortgage rates seems unlikely. Ref. CNN
Stocks recovered in a tumultuous session after huge losses a day earlier; the Dow closed up 430 points with a late surge.
Stocks at first dipped after the Federal Reserve said during the afternoon that it plans to keep interest rates "exceptionally low" until at least mid-2013 in response to a recent slowdown in the U.S. Recovery.
That was followed by a spike that made up a portion of Monday's 635-point loss for the Dow. Ref. CNN
The stock market got off to another wild start with a sharp sell-off Wednesday. The Dow dropped more than 400 points during the first hour of trading and all but erased the prior day's rally.
The S&P 500 and Nasdaq composite fell more than 3% each.
On Tuesday, stocks made a huge run higher in the aftermath of the Federal Reserve's pledge to keep interest rates "exceptionally low" through the middle of 2013. Ref. CNN