Dow roller-coaster notches up biggest ever daily points swing in frenzy of trading
Agencies in New York 12 October 2008
The Dow Jones Industrial Average went through its biggest ever points swing in a day on Friday as US stocks fell for an eighth straight day.
The index twice recovered from drops of 500 points or more, first in the opening hour and again after 2pm. The afternoon rally pushed the 30-stock index as high as 8,901.28 before gains were surrendered in the final minutes.
The market's "fear gauge", as the Chicago Board Options Exchange Volatility Index is known, climbed to a fifth-consecutive record.
Almost 3 billion shares changed hands on the floor of the NYSE, more than twice the three-month daily average and the third-highest level since 1988.
"This kind of volatility in the market tells you that there are huge disagreements among investors about what the fundamentals are, about what the outlook is," said Ethan Harris, managing director and chief US economist at Barclays.
The hair-trigger mentality of the market - a reflection of the intense anxiety on the Street - was evident from the opening bell. The Dow fell 696 points in the first 15 minutes, recovered to gain more than 100 before the first hour was over and then dipped sharply again. It spent much of the session with a deficit between 300 points and 500 points, regaining ground and then falling again - until the last hour, when the average swung hundreds of points that took the Dow up as much as 322. The sharp swings were likely exacerbated by computer-driven "buy" and "sell" orders that kicked in when prices fell far enough.
"Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone," said Dave Henderson, a floor trader.
The Dow fell 128, or 1.49 per cent, to 8,451.49, the lowest since April 25, 2003. At its low point on Friday, the Dow was down 696.68 at 7,882.51, just 60 points above its low in Wall Street's last bear market, reached on October 9, 2002.
It crossed the line between gains and losses 32 times during the session.
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Dow roller-coaster notches up biggest ever daily points swing in frenzy of trading
Agencies in New York
12 October 2008
The Dow Jones Industrial Average went through its biggest ever points swing in a day on Friday as US stocks fell for an eighth straight day.
The index twice recovered from drops of 500 points or more, first in the opening hour and again after 2pm. The afternoon rally pushed the 30-stock index as high as 8,901.28 before gains were surrendered in the final minutes.
The market's "fear gauge", as the Chicago Board Options Exchange Volatility Index is known, climbed to a fifth-consecutive record.
Almost 3 billion shares changed hands on the floor of the NYSE, more than twice the three-month daily average and the third-highest level since 1988.
"This kind of volatility in the market tells you that there are huge disagreements among investors about what the fundamentals are, about what the outlook is," said Ethan Harris, managing director and chief US economist at Barclays.
The hair-trigger mentality of the market - a reflection of the intense anxiety on the Street - was evident from the opening bell. The Dow fell 696 points in the first 15 minutes, recovered to gain more than 100 before the first hour was over and then dipped sharply again. It spent much of the session with a deficit between 300 points and 500 points, regaining ground and then falling again - until the last hour, when the average swung hundreds of points that took the Dow up as much as 322. The sharp swings were likely exacerbated by computer-driven "buy" and "sell" orders that kicked in when prices fell far enough.
"Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone," said Dave Henderson, a floor trader.
The Dow fell 128, or 1.49 per cent, to 8,451.49, the lowest since April 25, 2003. At its low point on Friday, the Dow was down 696.68 at 7,882.51, just 60 points above its low in Wall Street's last bear market, reached on October 9, 2002.
It crossed the line between gains and losses 32 times during the session.
Bloomberg, Reuters
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