Dow Plunges Nearly 1,000 Points Intra-Day, Before Bouncing Back
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Down nearly 2 percent all day, the Dow Jones Industrial Average crumbled just after 2:30 pm EST Thursday to levels not seen in 2010 in a matter of minutes, as fears of Greece's economic problems spreading into the U.S. financial system infested Wall Street.
After dropping more than 10 percent or 998.50 points to a low of 9,869.62 at 2:48 pm EST, the DOW quick rebounded back to 10,450 only minutes. The average finished the day down 3.2%, or 348 points.
The Nasdaq Composite and S&P 500 each suffered similar intra-day drops, but rebounded and closed down roughly 3 percent to close.
The drop-off was surely a painful reminder to those on Wall Street of the most terrifying days of the 2008 financial meltdown.
On a point-basis, the drop was the largest in history.
Some blamed human error or a "fat finger" trade for the plunge. Specifically, regulators are looking at trading in Dow-30 stock Procter & Gamble Co. (NYSE: PG), which plunged from $62 to $39.37 intra-day. In addition, trading in the E-mini S&P 500 futures which saw strange trading activity during the plunge has raised eyebrows.
Investors looked on as protesters took the streets in Athens to oppose the austerity measures that would allow the the Greek government to contain its debt problems, festering concerns that the country’s financial woes may spread to other countries in Europe and even stretch to the U.S.
The parliament in Greece passed a bill to allow the country access to monetary assistance from the European Union and International Monetary Fund, while the rest of the EU member will need to pass similar legislation for spending on the package to commence. All EU members are expected to approve the measure, starting with Germany on Friday.
Voters in the respective countries are not in favor of using individual country funds to bailout Greece from its debt troubles.
Given the recent history of the U.S. stock market, it seems to be that even images of protests across the Atlantic can put the stability of Wall Street at risk.
The sharp sell-off and related fears triggered a sharp spike in the CBOE Volatility Index (VIX) to above 40. The VIX ended up 32% to 32.80.
After dropping more than 10 percent or 998.50 points to a low of 9,869.62 at 2:48 pm EST, the DOW quick rebounded back to 10,450 only minutes. The average finished the day down 3.2%, or 348 points.
The Nasdaq Composite and S&P 500 each suffered similar intra-day drops, but rebounded and closed down roughly 3 percent to close.
The drop-off was surely a painful reminder to those on Wall Street of the most terrifying days of the 2008 financial meltdown.
On a point-basis, the drop was the largest in history.
Some blamed human error or a "fat finger" trade for the plunge. Specifically, regulators are looking at trading in Dow-30 stock Procter & Gamble Co. (NYSE: PG), which plunged from $62 to $39.37 intra-day. In addition, trading in the E-mini S&P 500 futures which saw strange trading activity during the plunge has raised eyebrows.
Investors looked on as protesters took the streets in Athens to oppose the austerity measures that would allow the the Greek government to contain its debt problems, festering concerns that the country’s financial woes may spread to other countries in Europe and even stretch to the U.S.
The parliament in Greece passed a bill to allow the country access to monetary assistance from the European Union and International Monetary Fund, while the rest of the EU member will need to pass similar legislation for spending on the package to commence. All EU members are expected to approve the measure, starting with Germany on Friday.
Voters in the respective countries are not in favor of using individual country funds to bailout Greece from its debt troubles.
Given the recent history of the U.S. stock market, it seems to be that even images of protests across the Atlantic can put the stability of Wall Street at risk.
The sharp sell-off and related fears triggered a sharp spike in the CBOE Volatility Index (VIX) to above 40. The VIX ended up 32% to 32.80.
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