Reeling Dow Closes Below 10K

Bailout doesn't provide quick relief for stocks
By Nick McMaster,  Newser Staff
Posted Oct 6, 2008 3:44 PM CDT
Traders work on the New York Stock Exchange floor, Monday Oct. 6, 2008.   (AP Photo/Richard Drew)
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(Newser) – Stocks saw heavy losses today as investors lost faith in the bailout’s ability to quickly reverse the slumping economy, MarketWatch reports. The Dow closed below 10,000 for the first time since 2004 after managing to claw back from an 800-point intraday loss. The final tick was down 369.88 at 9,955.50. The Nasdaq fell 84.43 to 1,862.96, while the S&P 500 lost 42.34, settling at 1,056.89.

"We've had the passage of the bailout but it will take time for it to start getting traction," said a Deutsche Bank strategist. The Pan-European Stoxx index saw its biggest single-day drop on record, sliding 7.6%, as the financial crisis spread to lending and banking institutions across the Atlantic and the Eurozone's leadership decided against a multinational rescue plan.