Dow Plummets 1,000, but Recovers

Thursday afternoon, the Dow suddenly plunged nearly 1000 points. It quickly recovered, however, now down 340 as of 3:10pm.

The euro is also hit a new 14-month low against the dollar. Commodities are also declining.

News reports indicate that the market became spooked that Greece's problems would cause widespread instability in Europe. Investors fear that these problems could overshadow the global recovery. Greek lawmakers approved their austerity plan today.

While the current loss to the Dow is significant at 340 points, or 3.1%, it is far less alarming than the initial 1000-point fall. The other broad indexes were also off, the Nasdaq by 2.7% and the S&P 500 by 3%. We'll update this post if the market's recovery from its earlier lows reverses course.

Update 1: Now down nearly 500 points again at 3:21pm.

Update 2: Looks like Megan's first inclination is right. There must have been something wrong with the trading system. Accenture temporarily dropped to 1 cent. There may have been others as well, as it's hard to say without knowing what happened to the entire universe of stocks.

Update 3: None of the Dow components appear to have suffered an Accenture-like fall to a penny, the drop of that stock and potentially other non-Dow components (it remains unclear) may have triggered a quick sell off until the problem got corrected.

Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.

The Blacksmith: A Short Film About Art Forged From Metal

"I'm exploiting the maximum of what you can ask a piece of metal to do."

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

Riding Unicycles in a Cave

"If you fall down and break your leg, there's no way out."

Video

Carrot: A Pitch-Perfect Satire of Tech

"It's not just a vegetable. It's what a vegetable should be."

Video

An Ingenious 360-Degree Time-Lapse

Watch the world become a cartoonishly small playground

Video

The Benefits of Living Alone on a Mountain

"You really have to love solitary time by yourself."

Video

The Rise of the Cat Tattoo

How a Brooklyn tattoo artist popularized the "cattoo"

More in Business

Just In