NEW YORK: US stocks plunged yesterday as global markets were rattled by further signs of recession in Europe and a shift in the US bank bailout strategy.
The Dow Jones Industrial Average plummeted 411.30 points (4.73 per cent) to finish at 8,282.66 and the Nasdaq dropped 81.69 points (5.17 per cent) to 1,499.21.
The broad Standard & Poor’s 500 index slid 46.65 points (5.19 per cent) to 852.30.
The market deepened opening losses after the government scrapped plans to buy toxic mortgages securities in a refocus of its massive financial rescue plan, raising fears the economy may be deteriorating rapidly.
Treasury Secretary Henry Paulson said the US$700 billion government rescue plan would focus now on continued capital injections to struggling banks, but would also look at ways to help the “non-bank” financial sector under the Troubled Asset Relief Program (TARP).
“His comments suggested to some that the original plan was ill-conceived and the economic slump might be deepening,” said Al Goldman at Wachovia Securities. - AFP
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