Dow drops 634 points after S&P downgrade
August 8th, 2011
04:16 PM ET

Dow drops 634 points after S&P downgrade

[Updated at 4:16 p.m.] The Dow Jones Industrial Average has suffered its worst one-day loss since December 2008, plummeting 634.76 points - to 10,809.85 - after S&P downgraded its rating for U.S. credit.

Monday's preliminary figure, after trading ending at 4 p.m. ET, represents a one-day loss of 5.5%. The Dow is below 11,000 for the first time since November.

The S&P 500 fell 6.6% and Nasdaq Composite was down around 6.9%.

[Updated at 2:27 p.m.] Dow extends loss to 600 points as stock sell-off accelerates.

[Updated at 2:03 p.m.] Dow drops 450 points, falling below 11,000 for first time since last November, as sell-off extends.

[Updated at 1:57 p.m.] President Barack Obama said Monday that the downgrade of the U.S. credit rating by Standard & Poor's occurred because "they doubted our political system's ability to act."

[Updated at 10:33 a.m.] Stocks extend losses after Mortgage finance agencies Freddie Mac and Fannie Mae were downgraded by S&P, following downgrade of the United States. Dow falls more than 300 points.

[Updated at 10:09 a.m.] U.S. stocks plunged Monday as Wall Street had its first opportunity to react to Standard & Poor's downgrade of U.S. debt.

The Dow Jones industrial average was down 203 points, or 1.8%; the S&P 500 lost 25 points, or 2%; and the Nasdaq Composite dropped 58 points, or 2.8%.

Monday's selloff was broad, with 28 out of the Dow 30 and 495 members of the S&P 500 trading in the red. The blue chips were dragged lower by a 8% drop in Bank of America shares and a 4% decline in shares of Alcoa.

CNNMoney.com: Track the markets

[Posted at 9:12 a.m.] U.S. stocks were set to tumble at the open Monday, tracking deep declines in global markets, as investors get their first opportunity to react to Standard & Poor's downgrade of U.S. debt.

S&P 500 and Nasdaq futures were all down more than 2% ahead of the opening bell. Dow Jones industrial average futures were less than 2% lower. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Late Friday, S&P downgraded United States' credit rating by one notch to AA , removing it from the Triple A-club for the first time in history.

Economists and investment strategists largely agree that there could be an initial shock, but the downgrade itself should not impact markets too much.

Still, the rating cut is unprecedented, so nobody can be certain.

Fortune: Wall Street to investors: Don't panic

FULL CNNMONEY.COM STORY
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soundoff (206 Responses)
  1. daniel

    a three year old could figure this out obviously all these highly educated idiots can't. simply get rid of career politicians. SEND THEM ALL HOME THEY HAVEN'T DONE THEIR JOBS ANYWAY. I would have been fired if It were Me. Get rid of illegal emigrants they are illegal!!!! are they worth risking our children's futures And well being heck the unitedstates is soon to be the new mexico they take food out of my children's mouth And send It home. they need their own revolution And fix their own government not destroy our way of life And i am an uncle to three. all they do is send It home THEY DON'T PUT IT BACK INTO OUR ECONOMY OOPS THERE WENT MORE JOBS. And get the gas prices down i spend 2/3 of a house payment In gas every month trying to get a business started And i compete with illegals they charge half price i can't afford to hire oops THERE went more jobs JUST MULTIPLY MY SITUATION TIMES 5 MILLION THAT IS A MINIMUM OF FIVE MILLION TAX PAYING JOBS LOST THAT WENT TO NON TAX PAYING ILLEGALS they can sustain themselves In their own country why here if you want to help someone help those who really need It. i don't know about all of you but i love my children ,mother And father. Its simple their aren't but a few basic needs for americans everything else can wait. sometimes their is only one thing we need to worrie about And thats ourselves ck

    August 8, 2011 at 9:30 pm | Report abuse |
    • Duh

      @daniel: It's 12 million illegals plus the 8 million+ jobs sent overseas.. Duh why can't people pay their mortgage, taxes, or buy stuff? They think we're stupid.

      August 8, 2011 at 10:25 pm | Report abuse |
  2. John K

    How ironic that Wall Street investors are now selling like mad and buying up US treasuries , the safest investment / shelter they can find . So much for S & P ! S & P who along with Moodys and the rest spent years giving Wall Streets junk sub prime mortgage loans and other garbage investments AAA ratings ! Who employes and pays these credit ratings agencies ? The Wall Street firms ! These guys are responsible for the economic implosion to begin with ! Is this system corrupt and broken ? Nahhhhhh . No government government regulation or oversight ? This is what you get . Keep voting Republican if you want to destroy your country .

    August 8, 2011 at 9:58 pm | Report abuse |
    • rick

      Republican/Democrat they all wind up doing the same thing in the end; screw the American public. Thats because the top 5% of the wealthiest and most influential families run this worl. Check out the Bilderberg group; They give the okay on who runs for president in this country. Thats why ron paul hardly gets a mention in the mainstream media.

      August 9, 2011 at 2:34 am | Report abuse |
  3. daniel

    i said just take my situation And multiply by five million i was not getting all statistical. not all of those jobs would fit my situation would they?

    August 8, 2011 at 10:58 pm | Report abuse |
  4. Jeniffer

    What goes around comes around! I remember when my country's market plunged after America's liberation, Americans replied by saying: "at least you are a democracy now.". So now you feel how it feels to be helpless.

    August 8, 2011 at 11:30 pm | Report abuse |
  5. Groupon

    This is a bit off topic but have natural male enhancement drugs available for half price (602)621-3688

    August 8, 2011 at 11:39 pm | Report abuse |
  6. Duh

    @daniel: I wasn't attacking your position. After reading my response I can see how it sounded. I was putting an exclamation point on it.

    August 8, 2011 at 11:45 pm | Report abuse |
  7. Bull Halsey

    Bush left us with a triple A rating, three years later with Obama we are downgraded. Thank you Obama and the Democrats you all know nothing about business.

    August 8, 2011 at 11:55 pm | Report abuse |
  8. s kel

    go to hell bull, bush started and your tea party congress led us to this, but your toobullheaded to admit it.

    August 9, 2011 at 12:04 am | Report abuse |
    • Fonz01

      Your just backing Obama cause he's black. He's way over spent more $ than Bush and the US economy is worse now than when Bush had it. Obama is a failure. Facts don't lie.

      August 9, 2011 at 12:13 am | Report abuse |
    • voter

      If Obama extended Bush tax cuts and republican policy has been in place for the last decade, the policy of the "business men" and "job creaters" then why is the economy so bad? As far as I'm concerned repubs. have been getting everything they want, so where are the jobs?

      August 9, 2011 at 12:56 am | Report abuse |
    • rick

      democrats have the ruling majority in the senate. So how did the tea party do this?

      August 9, 2011 at 2:36 am | Report abuse |
  9. Bull Halsey

    @s kel: and you think socialism/communism works? It is a failed ideology. Big government means small citizens.

    August 9, 2011 at 12:17 am | Report abuse |
  10. s kel

    Cantor said he would be glad go see this country loose its aaa rating, as did mconnell. glad, happy, no compremise at all. And i see these tea dogs on here blame pres obama,and dem???? Now u see why i hate them soo much.

    August 9, 2011 at 12:18 am | Report abuse |
  11. s kel

    bull get a damn grip. im in favor of free enterprise also, but im also in favor of my democratic( not party related)central govt. comm is state run all govt, capit.is being ruled totally by private profit enterprises.this country worked because of a balance of both. A narrow minded thought like what u said was "if u dont think like i do than your my enemy, thats the extream trash that was voted into congress in 2010 byz extream right wing group, the tea party. Thats why i went from working with them to hatingthem and wanting to see them destroyed. no compremise,nothing less, . I wont listen or ever agree with anything the teaparty/republicans has to say. You all must go.

    August 9, 2011 at 12:30 am | Report abuse |
  12. Bull Halsey

    First of all s kel you need to go back to grammar school and learn to spell and then learn history. And also need to come back to reality because Obama and the Democrats want a state controlled government. Obamacare is just an example. Oh how do you like Obamagedan!

    August 9, 2011 at 12:42 am | Report abuse |
  13. Partisan Sheep

    Yes keep fighting about party loyalty. See how well that's working? Fools.

    August 9, 2011 at 12:47 am | Report abuse |
  14. Partisan Sheep

    @Bull: You can't start a sentence with "And". Please learn proper sentence structure if you're going to argue with other illiterates.

    August 9, 2011 at 12:49 am | Report abuse |
  15. Shakira

    Hips don't lie and neither do facts. Both parties are a disaster. Look how divided all these posters are. Not one of them has a unique idea, instead they all regurgitate talking points from TV. This is quite sad.

    August 9, 2011 at 12:52 am | Report abuse |
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