Dow plunges 400 points (UPDATE: NOW TOTAL 520 POINTS)
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From Market Watch:
NEW YORK (MarketWatch) — U.S. stocks fell hard again Wednesday, threatening the prior day’s sharp gains, on worries the European sovereign debt crisis is escalating.
Treasuries climbed for a third day; bank stocks were slammed in the U.S. and Europe; the U.S. dollar gained and the euro lost ground. Gold hit $1,800 an ounce.
“Investors have been poking at the euro, saying they have to have a legitimate solution, they are not looking for papering over the problem, and they won’t rest until they figure out a way to devalue the euro or allow constituent countries to go back to their respective currencies,” said Jack Ablin, chief investment officer at Harris Private Bank.
What’s the point of market caps?
Apple briefly surpassed Exxon Mobil as the company with the largest market cap, but a classic contrarian investor is betting on beaten-down Bank of America, not the maker of iPhones and iPads, according to MarketWatch’s Mark Hulbert. Laura Mandaro reports.
“I think this is investors’ indictment of central governments. I thought maybe central banks commanded a bit more respect, but investors worry that we’re going to enter a downturn without the assistance of fiscal stimulus,” said Ablin.
The Dow Jones Industrial Average DJIA -3.01% fell as much as 468.22 points, and was lately off 435.29 points, or 3.9%, to 10,804.48, with all of its 30 components falling. On Tuesday the blue-chip index closed with a 429.92-point gain.
The Standard & Poor’s 500 Index SPX -2.57% dropped 43.70 points, or 3.8%, to 1,128.83, with financials slammed the hardest of its 10 major industry groups. Read more about financials.
The Nasdaq Composite Index COMP -2.28% shed 80.69 points, or 3%, to 2,401.83.
For every stock on the rise four fell on the New York Stock Exchange, where 769 million shares traded as of 11:40 a.m.
The Federal Open Market Committee on Tuesday said it would keep benchmark interest rates near zero to help prop up a recovery that is progressing slower than the central bank had anticipated.
Kate Gibson is a reporter for MarketWatch, based in New York.
Editor’s note: Since this article was written the Dow dropped another 120 points.
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Go ahead Amerrykkka, panic! Pull outta the market! Let’s watch it fall, fall, fall. When it hits bottom, I’m selling a bunch of gold and buying. A year from now, we’ll talk about it.
Been in the market for 30 yrs.