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. 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

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Filed under: Business • Economy • Finance
soundoff (206 Responses)
  1. s kel

    bull you right wing mornon, i have a masters in fire science, typing this on a tiny touch screen phone, your screwed up master gw bush stzrted all of this crap and u know damn well what i wrote about you stupid, hate loving tea garbage so called party members wanted this country to default, but like i said earlier you and your kind are too, blind and hatefull to admit it. your people are a danger to this country. You and your kind needs to go , by any means.

    August 9, 2011 at 1:04 am | Report abuse |
  2. s kel

    I have nothing but hatred for the tea party and if you support them, include yourself also. Like this means anything to people like you.

    August 9, 2011 at 1:07 am | Report abuse |
    • rick

      why don't you join the liberals and the republicans and point the finger at those who simply call for fiscal responsibility. You probably buy into all of the mainstream media disinformation that is out there. I don't support most politicians but I do support ron paul who is the person who started this whole tea party movement. Unfortunately people like michelle bachmann wants to label herself as a tea partyist but all she is is a puppet just like obama, just like reid and romney and so on. Wake up! stop listening to the media. You probably think raising the debt ceiling is a good idea. sure lets inflate the dollar some more so the prices of everything in this country goes up even more. Let's throw some more money on the fire and see if we don't get the same result.
      Bush wasn't a republican he was a con artist. So is romney, palosi,harry reid, the clintons, bachmann,etc. The only person in politics worth listening to who has real ideas is ron paul and if you can't see the truth in what i'm saying then you're either ignorant, blind or still asleep. wake up jack-o They're feeding us a bunch of crap on cnn,fox and msnbc. I quote rockefeller, "Give me control of a countries money and I care NOT who makes its laws." Pretty much sums up the elitist frame of mind. The kind of mind that is shared by wall street and washington alike these days. There are no republicans, democrats or tea partyist. There are only the haves and have nots. If you feed into their propaganda the YOU are part of the problem. The solution: mass national protests. Its the only way they will TRUELY LISTEN! Revolt!

      August 9, 2011 at 2:01 am | Report abuse |
  3. Bull Halsey

    @s kel: you would have a happier life in Venezuela or China.

    August 9, 2011 at 1:13 am | Report abuse |
  4. Bull Halsey

    @s kel: the only reason you dislike the tea party is that they are a threat to your foodstamps and other government hand outs.

    August 9, 2011 at 1:17 am | Report abuse |
    • rick

      amen, BULL!

      August 9, 2011 at 2:03 am | Report abuse |
    • voter

      Can we talk a little about AIG, Jp Morgan, Goldman Sachs, Merrill Lynch etc..... ?What about all the tax payers money from corperate welfare these clowns received for flushing the economy down the drain? Can we talk about the tax breaks they get or the government subsidies that general electric and oil companies get?

      August 9, 2011 at 2:06 am | Report abuse |
  5. s kel

    bull i would love to see you and your inbread incest loving tea trash family get the hell out of my country, take your trailer park ignorant meth smoking hate garbage and go. Tea trash garbage.

    August 9, 2011 at 1:30 am | Report abuse |
    • rick

      hey kel i served my country for four years. I, unlike you actually believe in being fiscally responsible. I also believe in freedom of speech. So you can call people all the names you want and spread all of that hate talk, but the only one who sound unintelligent and ignorant is you. Try coming up with some valid points as to why you HATE the tea partyists' instead of just slinging trash on here. It makes YOU sound like trailer trash.

      August 9, 2011 at 2:16 am | Report abuse |
  6. s kel

    and tell that overpaid govt hand out accepting stoned looking tea bag queen, mich bauchman to go with you.

    August 9, 2011 at 1:32 am | Report abuse |
  7. s kel

    tea garbage dog. Crawl someplace and die.

    August 9, 2011 at 1:33 am | Report abuse |
  8. Bull Halsey

    @s kel: if I was trailer trash, I would be a registered Democrat living on government welfare like you and your family. The tea party is going to take your free lunch away, that is why you are so angry.

    August 9, 2011 at 1:40 am | Report abuse |
  9. Cassarasa NYC

    Repukes are taking us back to where we were when that clown bush jr left office-how pathetic! These morons will stop at nothing!

    August 9, 2011 at 1:43 am | Report abuse |
  10. Cassarasa NYC

    ...just one reason we are countering the tea party on campus. these jokers are going nowhere ; the thought that compromise is equal to being sold out is but israeli knesset mentality, which in all honesty is barbaric and retrogressive. so enjoy the mound of waste that you have created and good luck securing that lower house majority: losers 🙂

    August 9, 2011 at 1:49 am | Report abuse |
  11. Bull Halsey

    Baracalyps Now is coming to a home near you.

    August 9, 2011 at 1:53 am | Report abuse |
  12. Howell

    Why don't y'all tell us how you really feel.

    August 9, 2011 at 2:03 am | Report abuse |
  13. Bull Halsey

    Most of those corporations you mentioned are big donors to the Democratic Party and the Obama Regime.

    August 9, 2011 at 2:14 am | Report abuse |
    • voter

      That's true. But let me tell you a know fact, while "most" of them donate to the dems. ALL of them donate even more to the repubs. and that is a fact.

      August 9, 2011 at 3:54 am | Report abuse |
  14. Bull Halsey

    Thank You rick!

    August 9, 2011 at 2:21 am | Report abuse |
  15. Bull Halsey

    George Soros and the Democrats are afraid of the Tea Party, that is why they blame them all the time.

    August 9, 2011 at 2:42 am | Report abuse |
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