“Another washout overtook Wall Street Thursday, sending major averages down as much as 7 percent as traders bailed out of the credit-battered stock market,” Jeff Cox reports for CNBC.
“The market’s afternoon selloff sent the Dow below 9,000 for the first time in five years, as unshakeable fears from the credit freeze combined with the expiration of short-selling rules to beat down stocks for the seventh straight day,” Cox reports.
“Selling grew downright feverish in the final hour as exasperated traders described an air of hopelessness and questions circled over what the market’s capitulation selloff point might be,” Cox reports. “The Dow roared past a 6 percent loss, with the worst damage coming in areas with any connection to the financial sector, though all 30 issues in the bluechip index fell. The index was off 37 percent from its all-time high a year ago today.”
“Technology shares, which had been helping to salvage an otherwise lackluster day in which banks and automakers languished, were the least hard-hit but still heavily damaged,” Cox reports.
“Nasdaq leaders Apple, Research in Motion, and Microsoft helped temper losses as the tech gauge fought for higher ground through most of the day. But even they couldn’t withstand the selling tsunami that enveloped the market,” Cox reports.
“A pair of economic reports had little impact on markets; both weekly jobless claims and natural gas inventories were in line with estimates,” Cox reports.
Full article here.