Things just keep getting worse on Wall Street, as the Dow Jones Industrial fell to its lowest level in more than six years. It was the lowest close for the Dow since October 9, 2002! The Dow finished the day down 89.68 points (-1.19%) at 7,465.95, while the S&P 500 also fell 9.48 points (-1.20%) and remained in the 700 range at 778.94.
Falling to record lows is very disheartening, and it has filled the stock market with immense pessimism. Factors that have continued to pull the markets down recently include a sense of uncertainty in the search for an end to the recession, continued depressing news from financial and bank companies, and the stale economic stimulus package and mortgage relief plan that have been heavily criticized recently.
A lot of incoming news today also heightened the pessimism on Wall Street. The number of workers receiving unemployment benefits hit a record high of nearly 5 million. Both Citigroup and Bank of America also fell around 14% on increased concerns that the government will nationalize the two banks. And, Hewlett Packard also dropped 7.9% after it announced disappointing 4th quarter earnings.
Having reached new lows today, we are now in uncharted waters moving forward. Will the psychologically depressing news from today continue to pull the markets down, or will the new lows from today signal a bottom that will lead to a huge rally? No one really knows the answer to this question, but almost every investor is extremely curious to find out.
Until tomorrow,
Niki Pezeshki
College Trillionaire
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