After a relatively stable day yesterday, the markets crashed in response to the AIG bailout:
AP: Wall Street plunged again in a crisis of confidence Wednesday as anxieties about the financial system still ran high after the government’s bailout of insurer American International Group Inc. The Dow Jones industrial average dropped about 450 points, and investors seeking the safety of hard assets and government debt sent gold, oil and short-term Treasurys soaring.
The great switch appeared to be on today with the Dow crashing and price of oil climbing $6. Are investors jumping out of stocks and back into commodities?
CNN: Oil prices jumped $6 a barrel Wednesday – staging the second largest one-day surge on record – as Wall Street’s precipitous decline sent investors scrambling to find other places to park their money.
The falling dollar and a government report of falling energy supplies also supported oil’s late rally.
U.S. light crude for October delivery settled $6.01 higher to $97.16 a barrel on the New York Mercantile Exchange, after trading as low as $91.36.
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