Stocks declined at the opening bell today, sending the S&P 500 into its worst two-day slump since 2002, Bloomberg reports. Investors reacted to an overnight credit downgrade for liquidity-challenged AIG and a weak Goldman Sachs earnings report. Overnight lending rates took a record jump last night, as markets fell around the world.
“Clearly, we’re not out of the woods,” said one money manager. “I wouldn’t be looking for near-term gains at all.” AIG shares were trading at about $2 at open, down 70% as the insurer continued to seek loans to stave off bankruptcy. Goldman fell 11%, after reporting a 70% drop in profits. The S&P 500 fell 21.47 points, while the Dow dropped 155.43. Yesterday the S&P posted its steepest drop since the 9/11 attacks.