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

 

Rohingya Muslims Massacred: Restrictions On Aid Put 1000s At Risk

Amnesty: The Myanmar authorities’ restrictions on international aid in Rakhine state is putting tens of thousands of lives at risk in a region where mainly Rohingya people are already suffering horrific abuses from a disproportionate military campaign. More>>

ALSO:

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

ALSO:

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC