In a little over two weeks, the Dow has tumbled more than 2,000 points as bad economic news continues to pile up. Word on Thursday that jobless claims hit a 16-year high, combined with a dreary outlook for Detroit and a lack of confidence in major financial institutions, helped drive the DJIA down to 7,552.29.
Wall Street Journal:
The Dow Jones Industrial Average plunged 444.99 points, or 5.6%, to 7552.29. The benchmark’s financial stocks were bludgeoned amid fears that more credit losses could begin to pile up from bets on commercial real estate, and that the balance sheets of financial institutions will be further sullied by what appears to be a worsening economic outlook.
Citigroup, which lost nearly a quarter of its value a day ago, dropped 26% amid anxiety about its credit exposure. But few banking companies were spared from a battering on Thursday. Fellow Dow components J.P. Morgan Chase and Bank of America declined by 18% and 14%, respectively.