NEW YORK—The Dow Jones Industrial average and the S&P 500 continued their perpetual slides Thursday, fueling fears of a recession as investors pulled out of stocks to flock to treasuries.
The Dow Jones dropped 444.99 points—5.56 percent—to 7,522.29 and the S&P 500 fell even more: 54.14 points—6.71 percent—to 752.44. Both closing prices are historic: the Dow Jones was down to its lowest value since March 2003 and the S&P closed at its lowest point since April 1997.
Citigroup led the Dow blue-chip stock drop by plummeting 26.4 percent to $4.71. Financial institutions were the hardest hit while investors speculated that government bailouts wouldn’t be able to save banks from collapse.
Automakers’ stocks, on the other hand, did better than their counterparts, due to a potential bailout for the auto industry being floated in Congress. Ford climbed 13 cents to $1.39, and General Motors rose 9 cents – 3.2 percent – to $2.88. General Motors was the only one of the 30 Dow stocks to end the day in the green.
Treasuries, meanwhile, rallied as the lure of government debt was too tempting to investors as the economy sours. 10-year notes made their biggest weekly advance in more than a decade. Yield on the 10-year note stayed steady at a little more than 3 percent, and all treasuries returned 9.3 percent this year, the best return rate in five years.
Oil prices also hit a historical low, falling below $50 a barrel to $49.62 as the world, and especially the United States, curbs consumption. Energy stocks tumbled: Marathon Oil fell 19 percent to $4.53, while Chesapeake Energy fell 28 percent to $13.98.
The Dow has dropped more than 870 points in the last two days, losing more than one-tenth of its total value as the United States braces for a recession. Both the Dow and the S&P 500 are valued near the bottom of their 52-week lows, with the Dow only about 45 points away and the S&P five.
The Dow Jones dropped 444.99 points—5.56 percent—to 7,522.29 and the S&P 500 fell even more: 54.14 points—6.71 percent—to 752.44. Both closing prices are historic: the Dow Jones was down to its lowest value since March 2003 and the S&P closed at its lowest point since April 1997.
Citigroup led the Dow blue-chip stock drop by plummeting 26.4 percent to $4.71. Financial institutions were the hardest hit while investors speculated that government bailouts wouldn’t be able to save banks from collapse.
Automakers’ stocks, on the other hand, did better than their counterparts, due to a potential bailout for the auto industry being floated in Congress. Ford climbed 13 cents to $1.39, and General Motors rose 9 cents – 3.2 percent – to $2.88. General Motors was the only one of the 30 Dow stocks to end the day in the green.
Treasuries, meanwhile, rallied as the lure of government debt was too tempting to investors as the economy sours. 10-year notes made their biggest weekly advance in more than a decade. Yield on the 10-year note stayed steady at a little more than 3 percent, and all treasuries returned 9.3 percent this year, the best return rate in five years.
Oil prices also hit a historical low, falling below $50 a barrel to $49.62 as the world, and especially the United States, curbs consumption. Energy stocks tumbled: Marathon Oil fell 19 percent to $4.53, while Chesapeake Energy fell 28 percent to $13.98.
The Dow has dropped more than 870 points in the last two days, losing more than one-tenth of its total value as the United States braces for a recession. Both the Dow and the S&P 500 are valued near the bottom of their 52-week lows, with the Dow only about 45 points away and the S&P five.
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