U.S. Stocks Drop in Rollercoaster Day

U.S. stocks fell for an eighth straight day in a whipsaw session that sent the Dow Jones Industrial Average to its biggest point swing ever.

The Standard & Poor's 500 Index capped its worst week since 1933, as concern that the financial crisis will send the global economy into a recession pushed Morgan Stanley, CBS Corp. and Exxon Mobil Corp. down more than 8 percent. The Dow recovered from a 697 point tumble and rose as much as 322 points in the last hour after an industry group said the bankruptcy auction of Lehman Brothers Holdings Inc.'s debt won't worsen credit losses.

The S&P 500 slipped 10.6 points, or 1.2 percent, to 899.32. The Dow lost 128 points to 8,451.19. The Nasdaq Composite Index added 4.39 points to 1,649.51. Eleven stocks fell for every 10 that rose on the New York Stock Exchange.

Canadian stocks followed global markets lower, led by energy and fertilizer companies, as the deepening credit crisis heightened concern the global economy is poised for a recession. The Standard & Poor's/TSX Composite Index slipped 381.74, or 3.98 percent.

Brazilian stocks tumbled for a seventh day and headed for the worst week this decade on concern a global recession will sap demand for raw materials. The Bovespa index slid 1,348.21 or 3.64 percent. The index has fallen 21 percent this week, poised for the worst weekly decline since September 1999.

European stocks tumbled, driving the Dow Jones Stoxx 600 Index to its worst week on record, amid concern the deepening credit crisis will send the global economy into recession. The Stoxx 600 slumped 7.6 percent to 204.97 as of 4:30 p.m. in London, extending this week's decline to 22 percent, the most since records began in January 1987.

National benchmark indexes decreased more than 4 percent in 16 of the 17 western European markets that were open. Germany's DAX fell 7.2 percent, while France's CAC 40 retreated 8.8 percent.

London equities tumbled on Friday extending the FTSE 100’s decline to five-consecutive days during which the senior index lost a fifth of its value. The FTSE 100 finished Friday’s session down 381.7 points, or 8.9 per cent, lower at 3,932.1, undermined by sharp falls in the US and across Asia. Over the week, the benchmark index was down 20.1 per cent and since its last peak in June 2007, the FTSE 100 is 43 per cent lower.

Asian stocks tumbled, driving Japan's Nikkei 225 Stock Average to its biggest weekly decline on record, on concern the deepening credit crisis will push the global economy into a recession.

Japan's Nikkei plunged 9.6 percent to 8,276.43. The gauge slumped 24 percent this week, the steepest decline since 1949, when data began.

Australian stocks plummeted the most since the October 1987 market crash as a credit freeze deepened, worsening the outlook for the global economy. Australia's S&P/ASX 200 Index plunged 360.20 points, or 8.3 percent, to 3,960.70 at the close of trading, extending its weekly decline to 16 percent, the biggest rout in the index's history dating back to 1992.

China's stocks slumped for a fifth day, driving the benchmark index to its worst week on record, amid concern the deepening credit crisis will push the global economy into recession and curb demand for Chinese goods. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 88.34, or 4.4 percent, to 1,906.96 at the close.

Indian stocks fell, with the Sensitive Index poised for its worst week in almost 18 years on concern the deepening credit crisis will push the global economy into recession. The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 611.07, or 5.4 percent, to 10,717.29 as of 10:58 a.m. local time.

Russia's market regulator delayed the opening of trading today on the Micex and RTS stock exchanges, after U.S. markets fell to five-year lows and Asian and European shares tumbled on concerns of a global recession. The Micex Index of 30 stocks climbed yesterday ...

TradingEconomics.com, Bloomberg.com
10/10/2008 1:25:53 PM