World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Scoop Link: A Wild Ride on Wall Street

By Ianthe Jeanne Dugan
Washington Post Staff Writer
Wednesday, April 5, 2000

NEW YORK, April 4 –– Frank Lai woke up praying that his nest of Nasdaq stocks would be stable enough today that he could rip himself away from the computer at his Las Vegas home and get back to his day job--running four Mrs. Fields Cookies stores.

But after ticking upward briefly at the opening of trading, the Nasdaq composite index began to slide. Lai sat glued to his machine, selling stocks to stave off brokers who had lent him money and picking up bargains on others. "This is the scariest day ever," he said, laughing nervously as his half-million dollar portfolio melted off 20 percent of the value it had when the week began.

The market recovered in the afternoon, but around lunchtime, many investors such as Lai lived the nightmare they had been fearing for weeks, as the Nasdaq and Dow Jones industrial average plunged in an apparent free fall, dropping hundreds of points in a matter of minutes.

The Nasdaq's drop began to pick up momentum shortly after noon and suddenly, the blue-chip Dow--which had been drifting all morning--started to follow it down. Between 12:30 and 1:15 Eastern time, both indexes just collapsed in a convulsion of selling. At their lows, both were down more than 550 points. For the Nasdaq, that was a huge move--down 13.6 percent, its biggest one-day drop ever.

"The bubble has burst," declared Mary Farrell, a leading market strategist at PaineWebber Inc., which has been running full-page ads in major newspapers warning of a bubble in what it called "new new economy stocks."

But, just as suddenly as they had plunged, the barometers snapped back. Buying started in the blue-chip shares and investors started bargain-hunting.

For more of this article click here.

© Scoop Media

World Headlines


Gordon Campbell: On The Hong Kong Protest Movement

The pro-democracy protests enjoy huge support among Hong Kong’s youth, partly because the democratic systems currently at risk have only a limited time span. More>>


Pacific Island Forum: Australia v Everyone Else On Climate Action

Traditionally, communiques capture the consensus reached at the meeting. In this case, the division on display between Australia and the Pacific meant the only commitment is to commission yet another report into what action needs to be taken. More>>


For NZ, It Was May 6: Earth Overshoot Day 2019 Is The Earliest Ever

Humanity is currently using nature 1.75 times faster than our planet’s ecosystems can regenerate. This is akin to using 1.75 Earths... More>>


Asylum: More Manus Refugees Fly To US But Hundreds Still In Limbo

“The US deal was never going to provide enough places for the refugees Australia has held on Manus and Nauru. There are over 1800 refugees needing resettlement,” said Ian Rintoul, spokesperson for the Refugee Action Coalition. More>>