World stock markets shudder, Dow dips below 10,000
U.S. stock markets appeared ready to follow global markets lower Monday as investor worries spread that a $700 billion financial system rescue plan in the U.S. would not do enough to halt rising bank failures, tightening credit, and economic slowing worldwide.
The Dow Jones Industrial Average dipped to 9,843 just before noon, marking the first time the Dow went below 10,000 in four years. Nasdaq dropped 5.5 percent to 1,840 before lunchtime.
European stock markets tumbled Monday. The FTSE 100 Index fell 245.58 points, or 4.93 percent, to 4,734.67 on the London Stock Exchange, while the Dax Index declined 293.49 points, or 5.06 percent, to 5,503.54 on the Frankfurt Stock Exchange. More bank failures roiled European trading. In Germany, a $68 billion bailout was arranged for Hypo Real Estate Holding AG while France's BNP Paribas SA agreed to buy the operations of Fortis in Belgium and Luxembourgfor $19.8 billion.