Dow Drops 508 Points

Fed's attempts to help do nothing for equities in the short term
By Nick McMaster,  Newser Staff
Posted Oct 7, 2008 3:31 PM CDT
Dow Drops 508 Points
NEW YORK - OCTOBER 07: A bronze statue of a bull fighting with a bear is displayed at the Museum of American Finance October 7, 2008 on Wall St. in New York City.   (Getty Images)

Stocks plummeted today, as actions by the Federal Reserve to prop up the commercial-paper market and hints of an interest-rate cut from Ben Bernanke failed to restore investors’ confidence, the Wall Street Journal reports. The Dow fell 508.39 to 9,447.11. The Nasdaq shed 108.08, closing at 1,754.88, and the S&P 500 lost 60.66 to settle at 996.23.

Financials led stocks lower, soured in part by rumors that Mitsubishi-UFJ may renege on its agreement to buy a stake in Morgan Stanley. The bank denied the reports, but its shares fell 25% anyway. Alcoa is set to kick off the third-quarter earnings report season after the bell today, and traders fear that a series of bleak updates will depress equities even further. (More Dow Jones stories.)

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