World Economy. Stock's Plunge again, again, again. Oct. 9.

Sep. 9, 2008.
Stocks plummeted for a seventh straight session on Thursday as investors bet recent moves by authorities worldwide to thaw frozen credit markets would not be enough to avert a global recession.

An avalanche of selling at the close left the Dow below 8,600 for the first time since May 2003, and down almost 40 percent from its all-time closing high hit exactly one year ago. The Nasdaq and the S&P 500 each also fell to levels not seen in more than five years.

Bank and insurance stocks got hammered again, as the previous day's coordinated global interest-rate cuts and myriad other official actions to unfreeze money markets did little to boost confidence in the financial sector. Some traders said the lifting of the ban on bets that financial stocks will drop may have contributed to the sell-off.

Credit markets remained clogged. The interbank cost of borrowing dollars for any period beyond overnight rocketed -- three-month dollar Libor hit its highest this year.

Shares of General Motors tumbled 31.1 percent to its lowest level since 1950 as concerns mounted that an industry decline that started in the United States was spreading and a leading forecaster warned global auto demand could "collapse" in 2009. GM closed at $4.76.

Exxon Mobil and Chevron led the Dow lower as the price of oil dropped below $87 a barrel on concerns a global slowdown would slam demand for energy.

"We're way beyond fundamentals. This is just pure panic, that's all it is," said Chris Orndorff, managing principal and head of equity strategy at Payden & Rygel, in Los Angeles.

The Dow Jones industrial average dropped 678.91 points, or 7.33 percent, to 8,579.19, while the Standard & Poor's 500 Index plummeted 75.02 points, or 7.62 percent, to 909.92. The Nasdaq Composite Index sank 95.21 points, or 5.47 percent, to 1,645.12.

Source:
http://www.reuters.com/article/newsOne/idUSTRE4984AY20081009

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