Update: The Dow dropped more than 678 points on Thursday to finish below 9,000. A full breakdown of how the other indices fared is here.
Earlier: So much for that early rally. The Dow is now down below 9,000 after steep declines in GM spurred a larger market collapse.
WSJ, shortly before 3:30 p.m.: That stomach-churning pattern continued Thursday as an early 190-point rally in the Dow Jones Industrial Average evaporated, leaving the blue-chip measure on the verge of a seventh straight daily loss. It was down more than 300 points in recent trading, falling below the 9000 mark…
The Dow has plunged nearly 15% during its losing streak so far, and is down 35% from its record finish a year ago.
Peter Cardillo, chief market economist at Avalon Partners, said the 9000 level, could prove to be an important testing ground for whether the broader crisis of confidence has run its course. If the market holds there, as Mr. Cardillo expects it might, the market could begin to build a more sustained rally. But if it breaks through that round number by a significant amount, the bloodletting could continue for days longer, at least.
The good news? We haven’t hit rock bottom yet.
“It’s getting to a point where it’s every man for himself,” said Mr. Cardillo. “When fear reaches that level, you’re getting close to a bottom. But we’re clearly not there quite yet.”…
Other major stock yardsticks were lower. The technology-focused Nasdaq Composite Index fell 0.8% to trade at 1727. The small-stock Russell 2000 tumbled 1.9% to 536. The S&P 500 shed 2.1% to trade at 964, led by a decline in its energy sector, off 8%. The S&P financials fell 5%…
Morgan Stanley was down 20%. The firm has slid recently despite assurances from the company and Japanese investor Mitsubishi UFJ Financial that a capital injection is going through.
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