Well, neither talk of the government taking ownership stakes in banks or yesterday's interest rate cut has helped stem the stock market's slide. Today, the Dow Jones Industrial fell 7.2% to close at 8,589 points, under 9,000 for the first time in five years. The Nasdaq fell 5.47% and the S&P 500 fell 7.5%.
The Dow has fallen 33% percent this year, and the graph at left from USA Today shows the trend since Monday. Bloomberg News writes that the sell-off was due to "higher borrowing costs and slower consumer spending" and "concern carmakers, insurers and energy companies will be the next victims of the credit crisis." General Motors fell more than 20% today.
Canaccord Adams managing director of US equity trading Dave Rovelli told CNBC, "This is a disaster, I can't put it any other way. You would think capitulation would have been the 1,300-point loss in the first three days this week. No one wants to own stocks. ... It's just constant negative energy."