Crisis Reverberates in Credit, Stock Markets; Dow Plunges 7.9%, Furthest Since '87, On Recession Fears
Stocks had their biggest decline since October 1987 as recession fears and continuing doubts about the world financial system wiped out most of Monday's historic stock surge.</br></br>The Dow Jones Industrial Average fell 733.08 points, or 7.9%, to 8577.91. It finished fewer than 130 points above last Friday's close, its lowest in five years.</br></br>It was the Dow's ninth-biggest one-day percentage decline in its 112-year history and the biggest percentage drop since a week after the 1987 crash.</br></br>The broad Standard & Poor's 500-stock index fell 9%, its worst percentage decline since it fell 20% on Black Monday in the 1987 crash.</br></br>The decline diminished hopes that stocks had hit bear-market lows on Friday, when the Dow finished its worst week ever down 40% from its Oct. 9, 2007, record close. The Dow is now 39.4% below its record close and off 35.3% in 2008. It has fallen nearly 21% so far this month.