KKTV - Economy - Headlines

Dow Falls Below 7,000 As Worries About Banks Mount

By: Associated Press
By: Associated Press
The Dow Jones news ticker is reflected on a window at the NASDAQ building just before the closing bell,  Monday, Oct. 6, 2008 in New York's Times Square. Wall Street suffered through another extraordinary and traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points _ their largest one-day point drop _ before recovering to close with a loss of 370.  (AP Photo/Mary Altaffer)

The Dow Jones news ticker is reflected on a window at the NASDAQ building just before the closing bell, Monday, Oct. 6, 2008 in New York's Times Square. Wall Street suffered through another extraordinary and traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points _ their largest one-day point drop _ before recovering to close with a loss of 370. (AP Photo/Mary Altaffer)

The Dow Jones industrial average has plunged below 7,000 as investors grow increasingly pessimistic about the health of banks, and in turn the economy, around the world.

The Dow hadn't traded below 7,000 since Oct. 28, 1997, and last closed below that mark on May 2 of that year. The credit crisis and recession have now slashed half the average's value since it hit a record high over 14,000 in October 2007.

Investors are again fleeing stocks in response to bad news about financial companies. The government said it would give American International Group Inc. another $30 billion in loans, in addition to the $150 billion it has already given the insurer. AIG also said it lost $61.7 billion in the fourth quarter.

Meanwhile, HSBC PLC reported a 70 percent drop in 2008 profit and said it needs to raise $17.7 billion and cut 6,100 jobs.

The Dow is down 133 at 6,929. The Standard & Poor's 500 index is down 14 at 720, and the Nasdaq composite index is off 22 at 1,355.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.

If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.

powered by Disqus
KKTV 520 E. Colorado Colorado Springs, CO 80903 Office: (719) 634-2844 Fax: (719) 632-0808 News Fax: (719) 634-3741
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 40538892