The Dow Jones industrial average has fallen another 200 points today on new concerns about the stability of General Motors and the ongoing uncertainty about the financial system. In afternoon trading, the Dow is down 228.35, or 3.32 percent, to 6,647.49, a low not seen since April 1997.
The Standard & Poor’s 500 index dropped 25.61, or 3.59 percent, to 687.26. The S&P has not traded below this level since October 1996. The Nasdaq composite index fell 39.54, or 2.92 percent, to 1,314.20.
Investors are having another change of heart and are selling stocks again after a one-day burst of optimism.
The major market indicators extended their slide to levels not seen in more than a decade today as investors contended with more disheartening economic data. The big indexes were all down more than 2 percent.
Stocks fell across the board, with the beleaguered banking sector posting some of the steepest losses. Shares of Citigroup Inc., still shaky despite receiving billions in government aid, sank below $1. General Motors, meanwhile, dropped below $2 as it warned of possible bankruptcy.
The market is also extremely anxious ahead of Friday’s February U.S. Labor Department report that is likely to show the loss of hundreds of thousands of jobs. Even some positive news, including some better-than-expected retail sales and factory orders, was not enough to stoke investor confidence.
The reports failed to show a significant improvement and so the market gave back its big gain from Wednesday, said Doreen Mogavero, president of brokerage Mogavero, Lee & Co.
“The economic data is still obviously a huge worry,” she said. “I don’t think anyone thinks we’re in the clear because the market was up yesterday.” (AP)