Mortgage Worries Drive Markets Down

Exchanges sink on subprime woes; Blackstone jumps in debut
By M. Morris,  Newser Staff
Posted Jun 22, 2007 4:45 PM CDT
Specialist George Moerler III talks with a pair of traders on the floor of the New York Stock Exchange Friday, June 22, 2007. Stocks fell sharply Friday, extending the stock market's losses for the week,...   (Associated Press)
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(Newser) – The major exchanges plummeted today, wrapping up a week of seesawing during which the Dow and the S&P 500 lost about 2% and the Nasdaq fell 1.4%. Even Bear Stearns' announcement that it will bail out a hedge fund entangled in subprime loans couldn't stop the bleeding. The Dow ended the day at 13,360.26, down 185. 58, or 1.4%.

Bear Stearns acted today to assume $3.2 billion in loads and head off creditors who had already begun selling assets. One bright spot was no-longer-private-equity firm Blackstone. The buyout firm, which went public yesterday, concluded its first day on the NYSE at $35.06, up $4.06 (13%) over the price of yesterday's IPO.