Stocks skidded Monday afternoon, with the Dow's nearly 778-point drop being the worst single-day point loss ever, after the House rejected the government's $700 billion bank bailout plan.
Stocks tumbled ahead of the vote and the selling accelerated on fears that Congress would not be able come up with a fix for nearly frozen credit markets. The frozen markets mean banks are hoarding cash, making it difficult for businesses and individuals to get much-needed loans.
According to preliminary tallies, the Dow Jones industrial average lost 777.68, surpassing the 684.81 loss on Sept. 17, 2001 - the first trading day after the September 11 attacks. However the 7% decline does not rank among the top 10 percentage declines.
The Standard & Poor's 500 index was down 8.7% and the Nasdaq composite 9.1%.
Monday, September 29, 2008
Congress rejects bailout; Worst DJIA point drop ever!
The Dow Jones Industrial Average fell 777.68 points today, mostly due to the House of Representatives rejecting the bailout: