Wall Street Has a Lousy Monday
Posted on Sep 22, 2008
While lawmakers debated exactly how to throw hundreds of billions of dollars at Wall Street, the Dow dropped 372 points on Monday. The price of oil, meanwhile, had a $25 surge that took many analysts by surprise.
Late Sunday night the two major remaining investment banks, Goldman Sachs and Morgan Stanley, changed their status to calm investors.
New York Times:
Stocks fell sharply and oil prices suddenly spiked on Monday as investors anxiously waited for Washington lawmakers to hash out the details of the biggest government bailout in history — a politically fraught process that will create a new slate of winners and losers on Wall Street.
That uncertainty, about a shaken financial system still in flux, appeared to spook investors away from assets tied directly to the health of the American government. The dollar dropped sharply against the euro, and oil prices jumped, closing up more than $16 a barrel.
The Dow Jones industrials closed down 372 points after spending the day deep in negative territory. The broader Standard & Poor’s 500-stock index finished down 3.8 percent.