So much for this morning’s bailout jubilation…
AP: Wall Street’s initial enthusiasm about a $586 billion Chinese stimulus package fizzled Monday, as investors succumbed to anxieties about how U.S. companies will survive a severe pullback in spending.
Stocks got a short-lived boost from China’s plans to boost its economy through a mix of spending, subsidies, looser credit policies and tax cuts. The package could benefit multinational companies with business in China such as General Electric Co. and Caterpillar Inc…
According to preliminary calculations, the Dow Jones industrial average fell 73.27, or 0.82 per cent, to 8,870.54, after rising by 215 points in early trading and tumbling by as many as 183. But trading was fairly orderly in the last hour — in recent weeks, stocks have often seen high volatility late in the day.
Broader indexes also ended lower. The Standard & Poor’s 500 index fell 11.78, or 1.27 per cent, to 919.21, and the Nasdaq composite index fell 30.66, or 1.86 per cent, to 1,616.74.
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