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Market Opens Sharply Down

By Dustin Lushing, Newser Staff

Posted Aug 16, 2007 10:18 AM CDT

(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.

Trader Louis Spina looks at his trading monitor on the floor... (Getty Images)

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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Investors Might Reap Rewards of Dollar's Slide

Currency's record lows against euro cause "to cheer," analyst says

Wait on Rate Hikes Until Crisis Eases

Fed should ignore critics, hold its ground until markets rebound

Feds Must Ward Off Stagnation, Clinton Says

Says buying mortgages might be necessary to avoid prolonged skid

Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

Bernanke Suggests Rate Cuts Ahead

Fed chief sees threats from employment, housing, credit

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OTHER STORIES ON OUR RADAR

stock market • Federal Reserve • subprime mortgages • Henry Paulson • business • shares • US economy • yen • interest rate • credit crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Investors Might Reap Rewards of Dollar's Slide

Currency's record lows against euro cause "to cheer," analyst says

Wait on Rate Hikes Until Crisis Eases

Fed should ignore critics, hold its ground until markets rebound

Feds Must Ward Off Stagnation, Clinton Says

Says buying mortgages might be necessary to avoid prolonged skid

Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

Bernanke Suggests Rate Cuts Ahead

Fed chief sees threats from employment, housing, credit

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?