(September 29, 2008)—The Dow dropped 777 points Monday after the U.S. House voted to reject a $700 billion emergency rescue plan for the financial industry.
It was the biggest closing point drop in market history, but far from the largest on a percentage basis.
The previous record was set on Sept. 17, 2001, the first day the markets reopened after the 9/11 attacks, when the Dow dropped about 684 points at the close.
While down sharply at midday, the key averages dropped quickly as investors reacted to the legislation's demise.
Just before 3:30 p.m. Monday, the Dow was down 777.68 at 10365.45.
The S&P 500 dropped 104 points or more than 8 percent to 1,109.
The Nasdaq composite was down about 200 points or 9 percent to 1,983.
Declining issues topped advancers by a 15 to 1 margin.
Preliminary volume on the NYSE topped 6.7 billion shares.
Volume on the Nasdaq came to 2.8 billion shares.
Light, sweet crude for November delivery sank $10.52 to settle at $96.36 on the New York Mercantile Exchange.
Meanwhile, U.S. House leaders say they're reconvening Thursday instead of adjourning for the year as planned, after dealing the financial market bailout a stunning defeat.
The fate of the rescue package remained in doubt as Democrats and Republicans both said they wanted to resurrect it.
They were locked in a brutal round of partisan finger-pointing over why it failed.
The Senate had planned a Wednesday vote on the measure.
President Bush and his economic advisers, as well as congressional leaders in both parties say it's vital to insulate ordinary Americans from the effects of Wall Street's bad bets.
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