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Wall Street Extends Losses Amid Rout
By TIM PARADIS - AP
posted: 23 MINUTES AGO
NEW YORK (Oct. 10)
- Wall Street extended its devastating losses Friday, but prices swung
sharply as investors scooped up shares decimated by more than a week of
intense and panicked selling. The Dow Jones industrials, down nearly
700 points in the opening minutes of trading, recovered to a loss of
just over 200, and the other major indexes fluctuated as well.
Frozen credit
markets and a loss of confidence in the world's financial system have
caused the Dow to drop 21 percent in just 10 trading days. The blue
chip index tumbled 678 points Thursday, and is heading to its worst
weekly point drop, and one of its biggest weekly percentage drops,
since being created 112 years ago.
markets and a loss of confidence in the world's financial system have
caused the Dow to drop 21 percent in just 10 trading days. The blue
chip index tumbled 678 points Thursday, and is heading to its worst
weekly point drop, and one of its biggest weekly percentage drops,
since being created 112 years ago.
Friday's gyrations
were likely caused the computer-driven "buy" orders that kicked in when
prices had fallen far enough to make some stocks look like attractive
bets. But that buying reflected no lifting of the market's deep
despair, and so the selling continued.
were likely caused the computer-driven "buy" orders that kicked in when
prices had fallen far enough to make some stocks look like attractive
bets. But that buying reflected no lifting of the market's deep
despair, and so the selling continued.
"Momentum is
running against the market and you don't want to get hit by a train,"
said Jack Ablin, chief investment officer at Harris Private Bank. "This
is now about market psychology. There's extreme fear and panic out
there."
running against the market and you don't want to get hit by a train,"
said Jack Ablin, chief investment officer at Harris Private Bank. "This
is now about market psychology. There's extreme fear and panic out
there."
Historic Market Losses
Richard Drew, AP
9 photos
Just
three days after falling below 10,000 for the first time in four years,
the Dow shed nearly 700 points Thursday. The benchmark index closed
below 8,600, hitting a five-year low.
three days after falling below 10,000 for the first time in four years,
the Dow shed nearly 700 points Thursday. The benchmark index closed
below 8,600, hitting a five-year low.