Financials Nudge Markets Down

Anxiety over Fannie, Freddie, fate of regional banks kill early rally

By Nick McMaster, Newser Staff

Posted Jul 14, 2008 3:31 PM CDT

(Newser) – The markets saw modest losses today, erasing an early-session rally spurred by the announcement of a government bailout plan for Freddie Mac and Fannie Mae as investors mulled the ramifications of a government rescue, MarketWatch reports. The Dow fell 45.35 points, closing at 11,055.19. The Nasdaq shed 26.21, closing at 2,212.87, and the S&P 500 lost 11.19, to close at 1,228.30.

Traders worry that the government is only able to rescue a small percentage of Fannie/Freddie’s debt—the combined $5.2 trillion in mortgages is almost double the entire federal budget for 2008. "Reality is setting in," one analyst said. "The news over the weekend regarding Fannie Mae and Freddie Mac was good—but also bad in that it's confirming what the market feared all along."

Traders work on the floor at the New York Stock Exchange in New York, Monday, July 14, 2008. (AP Photo/Seth Wenig)

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Financials Nudge Markets Down

Anxiety over Fannie, Freddie, fate of regional banks kill early rally

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Financials Nudge Markets Down

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OTHER STORIES ON OUR RADAR

NASDAQ • Dow Jones • Freddie Mac • Fannie Mae • S&P 500 • government backing • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bailout Rally Tails Off Late

Persistent worries about the non-financial economy temper gains

Modest Gains From Mixed Day

Fannie, Freddie continue to bleed out; H-P brightens tech sector

Financials Skid, Spark Sell-Off

Financials plummet on the prospect of a GSE bailout

Bad News Spurs Big Sell-Off

Poor results at AIG, nervous retailers, rising oil all contribute to decline

Dow Sinks Below 11K

Fannie, Freddie continue to sink; regional banks hit hard

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Newser By Users

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