A Week In Wall Street Hell
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After a valiant attempt to close into positive territory, stocks finished down for the eighth straight session Friday, putting an end to what was arguably the worst week in stock market history. The Dow started the day below the 8,000 level, but then managed a strong comeback mid-morning --- After falling back near the 8,000 level in the afternoon, stocks rallied strongly in the final hour of trading. The Dow ended down just 128 points, 570 points off the day's low. It was the first time the Dow swung more than a thousand points during a single session.
The Dow finished down 1.5% Friday and 18% for the week, its worst week in history. The Nasdaq finished up 0.3% Friday, but was down 15% on the week. The S&P finished down 1.2% Friday and 18% for the week.
Intensifying concerns that the global credit crisis will sink the U.S. economy into a deep recession was the driving factor for stocks this week. Central banks around the world searched for solutions to the credit mess, but so far there has been no magic bullets. The UK said it will inject capital directly into its banks, a move the U.S. may follow.
The Chicago Board Options Exchange Volatility Index, or VIX, called the 'fear index', surged to 76 today, before settling down at 69. Usually a reading above 30 indicate severe market pessimism.
Stocks across the world also sold off aggressively this week. The UK's FTSE 100 fell 20% this week, the German DAX fell 22%, and the Nikkei fell 24%.
The G7 met Friday to come with a global solution to the credit crisis, which has threatened the worldwide banking system. Some are calling on the group of the world's richest nations to guarantee lending between banks.
The massive selling this week spared few companies, including mighty industrial names like General Motors (NYSE: GM), which fell to levels not seen since 1950. Bank of America (NYSE: BAC), proved that it's not fun being a bank these days. BofA fell 40% this week after reporting much weaker-than-expected results, slashing their dividend in half, and then having to cut the price of a $10 billion stock offering numerous times to close it.
The Dow finished down 1.5% Friday and 18% for the week, its worst week in history. The Nasdaq finished up 0.3% Friday, but was down 15% on the week. The S&P finished down 1.2% Friday and 18% for the week.
Intensifying concerns that the global credit crisis will sink the U.S. economy into a deep recession was the driving factor for stocks this week. Central banks around the world searched for solutions to the credit mess, but so far there has been no magic bullets. The UK said it will inject capital directly into its banks, a move the U.S. may follow.
The Chicago Board Options Exchange Volatility Index, or VIX, called the 'fear index', surged to 76 today, before settling down at 69. Usually a reading above 30 indicate severe market pessimism.
Stocks across the world also sold off aggressively this week. The UK's FTSE 100 fell 20% this week, the German DAX fell 22%, and the Nikkei fell 24%.
The G7 met Friday to come with a global solution to the credit crisis, which has threatened the worldwide banking system. Some are calling on the group of the world's richest nations to guarantee lending between banks.
The massive selling this week spared few companies, including mighty industrial names like General Motors (NYSE: GM), which fell to levels not seen since 1950. Bank of America (NYSE: BAC), proved that it's not fun being a bank these days. BofA fell 40% this week after reporting much weaker-than-expected results, slashing their dividend in half, and then having to cut the price of a $10 billion stock offering numerous times to close it.
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