Traders work on the floor of the New
York Stock Exchange in the final minutes of the trading session in New
York, October 9, 2008. (Xinhua/Reuters Photo) Photo
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NEW YORK, Oct. 9 (Xinhua) -- The Dow Jones Industrial
Average dipped more than 7 percent Thursday as panic sell-off dominated markets.
Investors worried that higher borrowing costs could
make carmakers, insurers and energy companies the next victims of the credit
crisis.
The high borrowing rates cast doubts that money would
flow into other parts of the money markets, such as commercial paper, and free
up the clogged markets to all businesses to keep humming.
Shares of General Motors tumbled 31.1 percent to
their lowest level since 1950 as outlook for car sales worsened. Energy and
financial shares also were big drags on the indexes.
The Dow Jones industrial average closed down 678.91
points, or 7.33 percent, at 8,579.19. It's the first time since May 2003 that
the Dow was traded below 8,600.
The Standard & Poor's 500 Index plunged 75.02
points, or 7.62 percent, at 909.92. The Nasdaq Composite Index tumbled 95.21
points, or 5.47 percent, at 1,645.12.
Over past seven days, the Dow shed almost 21 percent
and the S&P 500 nearly 22 percent, their worst seven days since October 1987
in the wake of Black Monday. The Dow is down over 40 percent from a record high
of above 14,000 one year ago.
NEW YORK, Oct. 9 (Xinhua) -- The dollar rose against major currencies on Thursday as Wall Street fell sharply.
Investors were still worrying about the credit crisis despite global rate cuts on Wednesday. Stocks of General Motors fell 30 percent after a major credit ratings agency said it was considering cutting its rating on the largest car manufacturer, dragging broader stocks down. Full story
NEW YORK, Oct. 9 (Xinhua) -- Crude oil continued to fall on Thursday as demand concerns offset the effect of a likely production cut by the OPEC.
Light, sweet crude for November delivery fell 2.36 U.S. dollars to settle at 86.59 dollars a barrel on the New York Mercantile Exchange. Price slid to as low as 86.02 dollars a barrel, the lowest point since December 2007. Full story
WASHINGTON, Oct. 8 (Xinhua) -- The Federal Reserve,
together with six other major central banks from around the world, slashed
interest rates Wednesday to cope with the current financial crisis.
The U.S. central bank decided to lower its target for
the federal funds rate 50 basis points to 1.5 percent. It also approved a
50-basis-point decrease in the discount rate to 1.75 percent. Full story
NEW YORK, Oct. 8 (Xinhua) -- Wall Street slid for a six
consecutive session on Wednesday as the global coordinated rate cut failed to
ease investors' worries over U.S. economic condition.
Initially the market gained on the news that the
Federal Reserve and six other major central banks from around the world slashed
interest rates by 50 basis points. The coordinated rate cut, first time since
November 2001, aims to restore confidence in the market and prevent financial
crisis from becoming a global economic recession. Full story
WASHINGTON, Oct. 8 (Xinhua) -- The United States, at the
center of an intensifying global financial storm, could face an economic
recession, the International Monetary Fund (IMF) said Wednesday.
The U.S. economy is now slowing fast and "is likely
to contract in the current quarter and into early 2009," said the IMF in its
latest World Economic Outlook report. Full story
