In the wake of the US House of Representatives torpedoing the $700-billion Wall Street bailout on Monday, the Dow plunged 777.68 points (6.98%), to close at 10,365.45, its lowest close in nearly three years. The dive bested the record for the largest single trading-day decline set on 17 September 2001, when the market reopened after 9/11. On a percentage basis, however, it was only the 17th biggest single-day decline for the Dow, much less severe than the 20+% drop in 1987.
Auto stocks were pummeled, with GM dropping 12.8% to $8.51; Ford falling 13.3% to $4.17; Daimler AG down 10.3%, to $50.84; Honda Motors down 9.6%, to $28.93; and Toyota Motor falling 7.9%, to $83.56.
Light sweet crude for November delivery dropped 8.9%—more than $10 a barrel—to $96.37 on the NYMEX. This was the second largest drop in dollar terms on an active contract.
The Detroit News noted that GM stock fell to its lowest close since June 1954, according to the University of Chicago’s Center for Research in Security Prices. GM’s market cap fell is now at $4.8 billion.
Ford Motor Co. stock hit its lowest close since February 1986, and now has a market capitalization of $9.43 billion.