US financial stocks in worst fall since 2000

Source: Exec Digital USA

Date :7/25/2008 5:12:43 AM

US financial stocks suffered their worst one-day fall since 2000 yesterday, July 24, as investors’ recent optimism was hit by increasing concerns over unemployment and housing.

Financial shares had rallied more than 30 percent this week amid relief at smaller-than-expected losses at several leading lenders and a government crackdown on abusive short-selling.

But the double whammy of slumping existing home sales and a jump in jobless claims has sent financial sector stocks plummeting.

The Dow Jones industrial average (INDU) lost 283 points, tumbling 2.4 percent.

The broader Standard & Poor's 500 index (SPX) index fell 2.3 percent from Wednesday's close.

And the Nasdaq composite index (COMP) sank two percent.

Already this week we’ve seen Ford, American Express and Wachovia announce losses, and this has increased fear amongst investors that the nation's lingering credit crisis would continue for the long-haul.