Closing Bell: 08.10.07

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Another wild day for the markets, after a week characterized by unprecedented volatility and trading volume. The Dow Jones Industrial Average, the Nasdaq and the S&P saw volatility even before the markets opened, with futures trading down triple digits before recovering. Market hours saw a similar pattern, capped off with a final hour recovery in which indexes hit or at least came close to positive territory.
The Dow closed down 31.14 points, or 0.23 percent. The S&P 500 was up a bit more than half a point, about 0.04 percent. The Nasdaq Composite got the worst of it, closing out the day down 11.60 points, or 0.45 percent.
Central banks stepped in to the markets today, adding liquidity and making re-assuring noises that cheered the bulls. The federal-funds rate climbed above 6%, which the central bankers didn’t like because they’ve targeted 5.25% as the correct rate. To make interest rates behave the Fed Reserve made three repurchase announcements totaling $38 billion. Central bankers around the world also poured buckets of liquidity on the markets. It was like the aftermath of September 11th, 2001 all over again. Which, now that we think about it, doesn’t really sound that re-assuring. Was this week really the equivalent of September 11th?
On a cheerier note, today begins the start of a two day period known as a weekend. We’re badly in need of a drink. You are too. See you on the other side.
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