Markets Sink, But '07 Sees Gains

The markets took a tumble today, trimming but not eliminating yearly gains, MarketWatch reports. The Nasdaq, benefiting from its relative insulation from the housing crisis, rose 9.8% in 2007, although it fell 22.18 points today to end at 2,652.28. The Dow fell 101.05 to close at 13,264.82, a yearly gain of 6.4%, and the S&P 500 fell 10.13 to 1,468.36, up 3.5% for the year.

Many analysts attributed today's dip to investors swallowing losses for tax purposes. Despite the nature of the fall, many still see gloom ahead: "I am cautious towards the market,” one portfolio manager told Bloomberg. "This housing problem and the credit crisis that's related to it are very serious.” The markets will be closed tomorrow for the New Year's holiday. (More Dow Jones stories.)