The Dow Jones industrial average plunged more than 500 points in early trading on Monday, pushing it below 10,000 for the first time since October 2004, as investors bailed out of stocks on fears that the credit crisis is spreading economic havoc around the globe.
Traders on Wall Street said the government’s $700 billion economic rescue plan signed into law Friday might not be enough to calm the short-term economic storm. And that more capital must be injected into the global banking system.
WHAT THE FED DID: Making more cash available
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About 11:15 a.m. ET, the Dow was off 427 points, or 4.1%, to 9,898. It was the blue-chip average’s first trade below the 10,000 milestone since Oct. 26, 2004.
The sell-off followed similar stock routs in Asia overnight and in Europe today. Stocks in Tokyo closed down 4.3%. And shares in London, Germany and France were down 6.6% to 7.6% in afternoon trading.
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