 Stocks broadly sold off on Monday amid fears that a recovery for the global economy and the banking system may still be a long way off, sending market benchmarks past another set of milestones. The Dow Jones Industrial Average declined 299.64 points, or 4.2%, to 6763.29, its lowest close since April 25, 1997. The stock measure has fallen four straight days and in 10 of the last 12 sessions, declining 14.8% in that span. The Dow is down 25% from its January 2 peak for this year and down 52.25% from its high of 14164.53 on Oct. 9, 2007.
| "This market will only stop when people run out of stock to sell" |
All 30 Dow components dropped on Monday. Citigroup declined 20% to $1.20. General Electric sank 11% to fall under $8. Other big industrial companies like Boeing, Caterpillar and 3M swooned after a report from the Institute for Supply Management showed that the factory sector remains in dire condition.
| Citigroup declined 20% to $1.20. General Electric sank 11% to fall under $8. |
"Investors finally understand this recession will be deeper and longer, and the recovery will be shallow," said Joe Battipaglia, chief market strategist for the private client group at Stifel Nicolas. "And the government doesn't have a sense of any solution that might instill confidence."
| Since the top of the government doesn't have any sense ... |
|