Stocks Open Down on Bailout Impatience

Volatile session could be forthcoming
By Kevin Spak,  Newser Staff
Posted Oct 1, 2008 8:55 AM CDT
Traders John Porcelli Jr. center, and Peter Edelson, right, work on the floor of the New York Stock Exchange, Tuesday Sept. 30, 2008.    (AP Photo/Richard Drew)
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(Newser) – Stocks started off on the wrong foot this morning as investors awaited smoke signals from Congress. The Dow dropped 122 points, while the S&P and Nasdaq fell 1.3% and 0.9%, respectively. The session is likely to be a volatile one, with the Senate’s expected bailout vote tonight seen as a major turning point. “Given the political capital invested by all sides, we think that ultimately a deal will be reached,” said one strategist.

Speculation that the Fed may issue an emergency rate cut heated up as Goldman Sachs said they’re expecting such a move. The ADP employment index also bore positive news, showing a smaller-than-expected decline in private-sector US jobs. Perhaps most encouragingly, overnight lending rates dropped, though they remained above official rates.