Dow Jones posts record decline
As rescue is rejected
The Dow Jones Industrial Average posted its biggest-ever one day point decline Monday, falling 777.68 points, the equivalent of a 7 percent one-day loss, after the House of Representatives rejected a Bush Administration backed rescue plan for the nation’s struggling financial institutions.
The S&P 500 lost 106.59 points, its biggest decline since October, 1987. The Nasdaq Composite Index plunged 199.61 points, a nine percent one day drop.
Nearly $1.1 trillion in market value was wiped out from U.S. equities Monday, according to Bloomberg data.
The House voted 228 to 225 against a measure that would’ve given the Treasury Department access to $700 billion to buy bad debt from financial firms. The defeat was not expected on Wall Street.
The Dow Jones Industrial Average is now down 21.86 percent year-to-date. The S&P500 is down nearly 25 percent this year.
Local stocks were hit hard on Wall Street.