Stocks Seesaw as Credit Crisis Deepens

Dow down over 300 points before rallying on rate-cut rumors
By Greg Atwan,  Newser User
Posted Aug 16, 2007 3:35 PM CDT
Specialist Andrew Smith, right, directs trading at the post that handles Mattel on the floor of the New York Stock Exchange, Thursday morning, Aug. 16, 2007. Stocks fell sharply Thursday after a move...   (Associated Press)
camera-icon View 3 more images

(Newser) – The Dow closed down 15.69 at 12845.78 today, after plummeting 343 points in early morning trading on fears the credit debacle was spilling into the larger market. Investors continued to fret about the rising yen and nervous foreign markets, but rumors that the Fed would cut interest rates continued to percolate late into the day, despite contrary hints from Ben Bernanke.

The Nasdaq was off 7.76 to close at 2451.07, while the S&P actually climbed 4.55 to 1411.25; both indexes had lost 2% at midday. The financial sector led the charge back towards even numbers: Bear Stearns was up 13% on its best day since 2001 and Lehman and J.P. Morgan also rocketed. But the Journal reports that the word "panic" is echoing louder on Wall St. "People are running to the exits," one trader said.