Monday 6 October 2008

Dow closes below 10K first time in 4 years

In the US markets, the Dow Jones closed below the psychological 10000 mark for the first time in 4 years on fears that the credit crisis is spreading its tentacles across world markets. The index however pared its massive losses in the final hour of trade.

The Fed tried to ease Wall Street's pain by saying that the 28-day and 84-day cash loans being made available to banks will be boosted to $ 150 billion a piece, effective Monday. Also loans that will be made available in November to banks also will be increased to $ 150 billion each.

That makes a total of $ 900 billion in credit potentially outstanding over year end. But the US markets didn't find much respite and slumped.At closing bell, Dow Jones ends down 369 points, S&P 500 sheds 42 points and Nasdaq ends down 84 points.

Source: MoneyControl

Posted by Harsh at 20:54

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