Wikinews

US stock markets tumble on 'Black Monday' anniversary

There are no reviewed versions of this page, so it may not have been checked for adherence to standards.

Saturday, October 20, 2007

Spoken content icon This article features in a News Brief from Audio Wikinews:

Some say history tends to repeat itself. Today marked a day in history, when 20 years ago, the United States Dow Jones Industrial Average market crashed, on what is known as 'Black Monday'. The crash sent the market tumbling down 508 points, losing nearly 24%. On Friday, the Dow Jones nearly broke that record when the market closed at -366.94 points, down almost three percent.

Several factors could be to blame for the loss, one being Turkey's government approving a measure on October 18 to send Turkish troops into Iraq in an attempt to take out militants of the Kurdistan Workers Party (PKK). This sent oil prices skyrocketing to the highest prices in history, with the highest record being just over US$89.00, which was set on October 18.

Fears that the housing market in the U.S. has come to a standstill has also lead Caterpillar Inc., which manufactures and sells construction equipment to issue a warning that the standstill would cause profits to drop, and the American economy to be severely hurt. On Friday their stocks lost nearly six percent to close at $73.57.

Investors and experts of the markets are disturbed by the losses calling the situation ugly.

"It's pretty ugly. A company like Caterpillar should be a poster child for global growth and benefits of the weak dollar. It makes you question: Is global growth really that strong? Has the earnings kick from the weak dollar played itself out?" said Bell Curve Trading chief strategy expert, Bill Strazzullo.

Others believe that the losses were a way of emotionally responding to the events of 'Black Monday.'

"Some of the earnings reports were a little disappointing but not that bad. I think we're responding emotionally to the 20th anniversary of the October 1987 stock market crash. I'd like to laugh except it hurts," said T Rowe Price Head trader, Andy Brooks.

The NASDAQ also took heavy losses to close down 74.15 points or -2.64%, closing at 2,725.16. The S&P 500 was also hit hard, losing 39.45 points, or -2.56%, closing at 1,500.63.


edit

Sources

edit
 

Share this:           


 

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.
Retrieved from "https://en.wikinews.org/wiki/US_stock_markets_tumble_on_%27Black_Monday%27_anniversary"