Dow Tumbles Over 380 Points

Year's second-worst loss falls on heels of solvency fears
By Sam Biddle,  Newser Staff
Posted Aug 9, 2007 4:47 PM CDT
Dow Tumbles Over 380 Points
Trader Peter Tuchman pushes back his hair as he works on the floor of the New York Stock Exchange, Thursday afternoon, Aug. 9, 2007. Wall Street plunged again Thursday after a French bank said it was freezing three funds that invested in U.S. subprime mortgages because it was unable to properly value...   (Associated Press)

The Dow Jones lost nearly 3% of its value today, tumbling 387.18 points to 13,270.68 in the second-worst drumming of the calendar year. Trading curbs were in place early, after BNP Paribas froze funds that took a bath in the US credit market and Chinese exchanges crashed overnight, but they couldn't prevent the hemorrhaging caused by liquidity fears and looming subprime woes.

The S&P sank 44.40 to 1,453.09 and the Nasdaq dropped 56.49 to end at 2,556.49. Citigroup, JPMorgan and Goldman Sachs all helped erase the three-day rally in US indexes, as investors continue to wax skeptical of the credit market. "It looks hideous out there," bemoaned one equity strategist. A measure of stock market volatility hit a four-year high. (Read more housing market stories.)

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