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October 16, 2008 4:19:02 PM CDT

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Market Opens Sharply Down

Posted Aug 16, 07 10:18 AM CDT in US,  Business,  World 

(Newser) – US stocks dipped this morning, following steep declines in Europe and Asia as distress over the expanding credit crisis heightened. The Dow Jones sank over 100 points this morning, and the S&P was off nearly 0.8% after erasing its entire year's gains yesterday. "Everyone is waiting for the other shoe to drop,'' said an investment strategist.

Emerging-market shares and currencies also slumped, Bloomberg reports, as the Japanese yen rose to its highest levels against the dollar and Euro since 2006, while the risk of owning corporate debt continued to climb. But Henry Paulson says the Fed probably won't cut interest rates, vowing the American economy is strong enough to stave off a recession—a vow likely to bludgeon the market today.

Source Bloomberg

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A stock dealer sits in front of the German Stock Index (DAX) display at the stock exchange in Frankfurt, Germany, Thursday, Aug. 16, 2007. Germany's DAX-30 Index opened 2 percent lower at 7,297 on Thursday...   (Associated Press)
Trader Paul Laregina takes a break on the floor of the New York Stock Exchange, Tuesday, Aug. 14, 2007. Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending amid a disappointing...   (Associated Press)
Traders crowd the floor at the post that handles Blackstone Group LP at the New York Stock Exchange as they wait for the stock to open on the initial public offering, Friday, June 22, 2007. Blackstone...   (Associated Press)
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stock market  • Federal Reserve  • credit crisis  • US economy  • subprime mortgages  • Henry Paulson  • business  • interest rate  • shares  • yen


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