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Dow drops below 11,000 for 1st time in 2 years
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| Contributor | RP |
| Last Edited | RP Jul 11, 2008 02:05pm |
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| Category | General |
| Media | Website - Yahoo News |
| News Date | Friday, July 11, 2008 07:55:00 PM UTC0:0 |
| Description | Wall Street sank further into a bear market Friday, as investors dumped stocks on troubles at mortgage companies Fannie Mae and Freddie Mac and oil's continuing climb into record territory. The Dow Jones industrials slid below the 11,000 mark for the first time in two years before paring their losses.
Friday's drop meant Wall Street moved squarely into a bear market, which is defined as a 20 percent drop from a recent peak. At its low Friday, the Dow was down 22.5 percent from the record closing high of 14,164.53 it reached in October. The S&P 500 was down 21.7 percent and the Nasdaq was off 22.9 percent.
Oil, meanwhile, extended its move into record territory, rising as high as $147.27 amid tensions between the West and Iran and the potential for attacks on Nigerian oil facilities.
Bond prices fell sharply as investors worried a bailout of Fannie Mae and Freddie Mac could dent the government's credit rating. Ordinarily, bonds are seen as a safe haven during stock market pullbacks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.90 percent from 3.80 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose. |
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