February 23, 2009: Standard and Poor, Dow Jones Index Slide to 12-Year Low

Global recession fears deepen as uncertainty regarding bank bailout plans drives negative investor sentiment on Wall Street. The Dow Jones index closes down 196.01 points, or 2.7% at 7169.66, the lowest since October 1997. The S&P 500 index loses 2.9% to 747.94, below its lowest close since April 1997. Investors initially welcomed reports that the Feds would convert an earlier investment in Citigroup into a large common stock holding, but enthusiasm faded as long-standing uncertainty about the government’s ultimate plan for banks resurfaced to pull indexes lower. European stocks also retreat, sending the Dow Jones Stoxx 600 Index to a new six-year low. It slides 0.9% to 175.29, dropping for a second straight day and closing at its lowest level since March 13, 2008. National benchmark indexes dropped in 15 of the 18 western European markets. [National Business Review, 2/23/2009]