Friday, October 10, 2008

Crash is Biggest Fall Since 1987

The US stock market suffered its largest loss since the crash of 1987 on Thursday amid panic over General Motors, Morgan Stanley and several big insurance companies.

The market collapse heightened speculation that the US would unveil a bank recapitalisation plan in the coming days.

Share prices in the US, which had opened higher, plunged in a catastrophic final hour of frenzied trading, with the S&P 500 index closing down 7.6 per cent at 909.92, while the Dow Jones Industrial Average lost 7.3 per cent to 8,579.19, closing below 9,000 for the first time since 2003.

In Japan, the Nikkei average tumbled 10.6 per cent to 8183.37 by the end of the morning session on Friday.

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