Dow plunge: Worst percentage drop for February since 1933

Obama’s 5 ½ week presidency sending chill through the market

A late burst of selling sealed a dismal finish for the stock market, which hit a fresh 12-year low on Friday as Citigroup sold a bigger chunk of itself to the government and General Electric slashed its dividend, spooking investors who were already jittery, according to a report in the Wall Street Journal..

The Dow Jones Industrial Average dropped 119.15 points, or 1.7%, to end at 7062.93. The blue-chip benchmark ended down 937.93 points, or 11.72% on the month — the worst percentage drop for February since 1933, when it fell 15.62%. The Dow industrials have fallen six months in a row and are now more than 50% off their record highs hit in October of 2007.

The S&P 500 fell 17.74 points, or 2.4%, to 735.09. Its financial sector dropped 6.5% and its health-care sector sank 4% on fears that President Barack Obama’s reform plans will carve into the profits of drug makers and insurers. The S&P is off 53% from its October 2007 peak and has now seen its worst six-month drop in percentage terms — 42.7% — since 1932, when it dropped 45.44% in the six months ending in June.

4 Responses to Dow plunge: Worst percentage drop for February since 1933

  1. Villanova says:

    Seems to me this is what we were promised: Hopeless Change.

  2. Steve says:

    No hope and less change. And it will only get worse, I fear.

  3. RA says:

    Perhaps this signals the rise of a new trading strategy using ETFs that are inversely correlated with the market’s direction. Every time the Dot-Obomber has opened his mouth so far, the market has dropped, and with good reason.

  4. Ron says:

    I don’t foresee any corrections in either the short or long term. Meanwhile, we all sit by and watch our life savings depleted by the market reactions to the actions of the Obamessiah. For the first time, my fear factor is palpable.