Stocks took an even sharper dive late in the afternoon on Monday, as stricken investors sent the Dow Jones industrials down more than 700 points with 90 minutes remaining in the session.
Markets around the world spiraled downward on Monday as the banking crisis tightened its grip on the global economy. For the first time since 2004, the Dow was trading below 10,000, a psychological milestone that came as the index lost more than 500 points in the first hour of trading alone.
Selling intensified throughout the morning as investors reeled from a series of high-profile bank bailouts in Europe, where governments scrambled over the weekend to save several major lenders from collapse.
By 2:30 p.m., the Dow was down 6.9 percent. The broader American stock market fell 7.5 percent, as measured by the Standard & Poor’s 500-stock index, its worst decline since last Monday’s 8.8 percent drop.
The Dow has lost more than 1,100 points -or about 10 percent- in slightly more than a week, and the S. & P. has lost more than 15 percent in the same period.