(October 24, 2008)—Stock prices plunged in early trading Friday after huge drops on overseas markets.
The Dow Jones Industrial Average was down about 500 points in the first five minutes of trading.
Analysts say the latest leg in the bear market reflects recession concerns.
Japan's Nikkei stock average fell 9.5 percent and Germany's benchmark DAX index was down nearly 11 percent.
Investors appear to be pricing in a long and severe recession, even after a series of government rescue efforts aimed at shoring up the financial system.
Ahead of the open, the Dow futures fell the limit of 550 points or nearly 6.3 percent.
The big drop in futures trading is raising discussion of circuit breakers intended to be triggered during regular trading, something that hasn't happened since 1997.
The thresholds that would trigger a halt in trading are set at a decline of 10 percent, 20 percent and 30 percent in the Dow, based on where that index was at the beginning of the current quarter, which would mean declines of 1,100 points, 2,200 points and 3,300 points, respectively.
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