Stocks on Wall Street recorded a record drop on Monday, with the largest point drop in the history of the Dow Jones index of nearly 778 points, after the House of Representatives rejected the government’s $700 billion plan to rescue the troubled financial sector.
According to preliminary estimates, the Dow Jones index fell by 777.68 points, or 6.98 percent, to 10,365.45 points. This surpassed the drop of 684.81 points recorded on September 17, 2001, the first trading day after the terrorist attacks on the U.S. on September 11. The broader Standard & Poor’s 500 index fell by 106.85 points, or 8.81 percent, to 1,106.42 points. The technology index Nasdaq fell by 199.61 points, or 9.14 percent, to 1,983.73 points. On the New York Stock Exchange, the selling of stocks was so intense that only 162 stocks recorded an increase in value, while 3,073 fell.
"The stock market is definitely stunned. If you followed the news over the weekend, it seemed like an agreement was reached. But money has become a hostage to the political process," assessed Drew Kanaly, CEO of the investment firm Kanaly Trust Company.
"This is a big surprise," said Jack Ablin, chief broker at Harris Private Bank, to CNNMoney. Stocks on Wall Street had been falling since the market opened in the morning, due to uncertainty surrounding the congressional vote on the financial sector rescue program, and when it was reported that the bill was not accepted, the Dow Jones plummeted by several hundred points within a matter of minutes. Although an amended version of the plan will likely be presented to Congress again, investors fear that the effects of the plan will be uncertain, and the entire process will be drawn out, CNNMoney reports. (Hina)
