Worries over the credit market's effect on the broader economy resurfaced in a big way today as stocks sank, swamped by yesterday's newly glum growth forecast from the Federal Reserve. Other economic data released today were similarly bleak. "The index of leading indicators was a pretty lousy number," says a bank exec. The Dow was down 211.10 to 12,799.04, the Nasdaq 34.66 to 2,562.15, and the S&P 22.93 to 1,416.77.
Big financials fell hard today, with American International, American Express, JP Morgan, and Citigroup all slipping in response to the subprime mess. The one positive bit of news on the day was a drop in unemployment, but that did little to reassure investors, reports the Wall Street Journal. "If there was a silver lining, that was it," says a strategist.