With the analysts chalking it up to new concerns that we’re in a recession, the Dow experienced is second greatest point drop ever today with relatively little fanfare, dropping 733 points. The NASDAQ was off 8.5 percent and the S&P 500 lost 9 percent of its value. It goes without saying that this extraordinary volatility continues with the market see-sawing between massive losses and record-setting gains.
The slide meant that the Dow, which lost 76 points on Tuesday, has given back all but 126 points of its record 936-point gain of Monday, which came on optimism about the banking system in response to the government’s plans to invest up to $250 billion in financial institutions.
The Dow was down all day, but plunged after the government reported a higher than expected drop in retail spending.
Wednesday’s selloff began after the government’s report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.
According to an MSNBC chart, of the top ten greatest point losses in Dow history, five of them have occurred in the past month; the greatest drop of 777 points on 9/29/08; today’s drop is #2.
Perhaps most telling, however, is this: “The Dow’s massive decline Wednesday marks its 20th triple-digit move in 23 sessions.”
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The Mississippi Free Press produced this story through the MFP Solutions Lab, supported by the Solutions Journalism Network. This series digs into Mississippi’s systemic issues and sheds light on responses to them in other communities. Beyond just reporting on problems, these stories interrogate their causes and inspect potential solutions.