Credit Woes Wipe Out Bounce

Black Friday upswing crushed by the financial sector
By Sam Gale Rosen,  Newser Staff
Posted Nov 26, 2007 3:44 PM CST
A sign outside a branch of the HSBC Bank, Croydon, Surrey, Britain, is seen in this March 1, 2007 file photo. Shares of British bank HSBC Holdings PLC fell Monday, Nov. 26, 2007 after it said it plans...   (Associated Press)
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(Newser) – Credit worries wiped out the market's bounce from Black Friday today as the Dow plunged well over 200 points. The financial sector led the dive. "Until the financials bounce back the market's not going to be in a great place," one trader tells the Wall Street Journal. The Dow was down 237.44 to 12,743.44, the Nasdaq 55.61 to 2,540.99, and the S&P 500 33.48 to 1,407.22.

Stocks drifted in and out of positive territory for the beginning of the day, than plunged. As fears of a recession start to become more serious, most expect the Fed to cut rates at its next meeting on December 11. "If we're going to see this pressure mitigate substantially we need to see a more aggressive Fed," says a strategist.