Business | Markets
Credit crisis, recession fear sink Wall Street
US stocks ended sharply lower on Monday, with the Dow finishing below 10,000 for the first time in four years, on concerns that fallout from the escalating credit crisis will drag the global economy into recession and cripple profits.
- Reuters
- Published: 01:05 October 7, 2008
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New York: US stocks ended sharply lower on Monday, with the Dow finishing below 10,000 for the first time in four years, on concerns that fallout from the escalating credit crisis will drag the global economy into recession and cripple profits.
Based on the latest data, the Dow Jones industrial average fell 369.88 points, or 3.58 per cent, to end unofficially at 9,955.50.
The Standard & Poor's 500 Index slid 42.38 points, or 3.86 percent, to close unofficially at 1,056.85. The Nasdaq Composite Index shed 84.43 points, or 4.34 percent, to finish unofficially at 1,862.96.
It was the S&P 500's lowest close since December 2003.
Gold rises 4 per cent amid stocks decline
New York/London: Gold prices rose 4 per cent on Monday as investors sought a safe haven from steep losses in world stock markets amid mounting fears a worsening financial crisis would lead to a global recession.
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Gold jumped in spite of a rallying dollar, heavy drop in crude oil and widespread losses in all other commodities.
Losses on the equity markets spurred buying of alternative assets, such as bullion. The blue-chip heavy Dow Jones industrial average .DJI fell more than 700 points at one point, breaking below 10,000 for the first time since October 2004, while European stocks also plummeted.
"There is a flight to gold as a safe haven again today, which is supporting prices," said Dresdner Kleinwort consultant Peter Fertig.
Spot gold traded at $867.30/869.30 an ounce at 2:37 p.m. EDT, up 3.9 percent from $834.80 an ounce, its Friday nominal close.
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