Battered Dow Ends Down 635

US' downgraded credit rocks Wall Street in punishing session
By Polly Davis Doig,  Newser Staff
Posted Aug 8, 2011 3:14 PM CDT
A trader checks monitors at a bank, in Milan, Italy, Monday, Aug. 8, 2011. A risky European Central Bank decision to fight the continent's debt crisis by buying Spanish and Italian bonds on Monday.   (AP Photo/Antonio Calanni)
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(Newser) – The Dow Jones plummeted under 11,000 today, dropping 635 points as the United States' downgraded credit rating punished the markets. The drubbing took the Dow down 5.55% to 10,810, reports MarketWatch. The Nasdaq and S&P 500 bled more, shedding 6.90% and 6.66% respectively.

“The initial reaction with most things problematic in the market is to sell and ask questions later,” one investment banker told the Wall Street Journal this morning. The turmoil sent investors scrambling to an ironic place for safety: US Treasuries, which saw big gains despite the downgrade. T-note yields hit their lowest level since January 2009. Gold also soared, closing at more than $1,713 an ounce.

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