Dow Takes a 998.5 Point Dive Amid Financial Crisis in Greece
May 6, 2010
(ChattahBox)—Fear, panic, horrified; those are the woods financial experts are using to describe the precipitous 998.5 point nosedive take by the Dow Jones Industrial Average on Thursday. The worst tumble, since the crash of 1987, is being blamed on the financial crisis in Greece, which caused a severe drop in the euro. As the euro fell to a 14-month low, a wave of panic selling set in.
Although it was surmised the Dow tumble may have been due to “erroneous trades,” the New York Stock Exchange found no system errors.
According to the report by Bloomberg News; it was a wild ride on Wall Street today:
“The Dow average lost as much as 998.5 points, or 9.2 percent, before paring its drop to 348.63 points at the 4 p.m. close of trading in New York. It ended the day at 10,519.49, a two-month low. The Standard & Poor’s 500 Index fell as much as 8.6 percent, its biggest plunge since December 2008, before trimming declines to end down 3.3 percent at 1,128.03.”
Burt White, chief investment officer at LPL Financial in Boston, blamed “panic selling” for the drop. Another analyst referred to the market, as “horrified” with panicky investors dumping risky assets.
And there are the news reports of violent Greek protesters running wild in the streets, causing fear in the global markets, which only adds to the uncertainty in the market.