Global Worries Briefly Push Stock Index Below 8,000 in Early Trading
By Renae Merle
Washington Post Staff Writer
Friday, October 10, 2008; 10:17 AM
U.S. stocks continued a relentless sell off today as fears of global recession continue to overtake government efforts to address the financial crisis.
The Dow Jones industrial average fell below 8,000 briefly --8 percent, or nearly 700 points-- at the opening bell. It fell below 9,000 for the first time in five years yesterday.
After 30 minutes of training, the Dow was bouncing between positive and negative territory. The broader Standard & Poor's 500, after falling as much as 7 percent, was flat after 40 minutes of trading. The Nasdaq, after falling 6 percent at the opening bell, was trading slightly positive.
The market is headed toward eight days of losses as it faces deepening fears about the financial crisis and its spillover to other parts of the economy. Traders have consistently shrugged off drastic government efforts to address the problem, from a global rate cut to plans to buy toxic mortgage debt. The Bush administration is now hammering out the final details of a plan that would allow the government to inject cash into banks in exchange for ownership stakes.