US market slumped further on dormant market

US market slumped further on dormant market
# 08 October 2008 08:51 (UTC +04:00)
Baku. Vahab Rzayev - APA-Economics. Steps taken by the Federal Reserve to give a boost to the latent credit markets ultimately weren’t enough to calm nervous investors.
The S&P 500 slid 60.66 points, or 5.7%, to 996.23, extending its 2008 tumble to 32% in the market’s worst yearly slump since 1937. The Dow dropped 508.39 points, or 5.1%, to 9,447.11, giving it a 29% fall in 2008 that would also be the worst in 71 years. The Nasdaq lost 5.8% to 1,754.88.
Bank of America tumbled 26% after cutting its dividend in half and saying it plans to sell $10bn in common stock to brace for a recession. Morgan Stanley, KeyCorp and JPMorgan Chase slid more than 10% as investors shrugged off signs the Fed will reduce interest rates.
General Growth Properties Inc., a mall owner, plunged 42% on concern it won’t be able to repay debt.
The UK’s FTSE 100 index rose 0.2% to 4,596.42 and the French CAC-40 index advanced 0.5% to 3,732.22. Germany’s DAX 30 index , however, fell 1.1% to 5,326.63.
The Russell 2000 index of smaller companies fell 36.96, or 6.20 percent, to 558.95 and Japan’s Nikkei stock average fell 3.03 percent.
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