Stocks: 5-year lows
Dow falls below 9,000 for first time since '03 - on the 1-year anniversary of all-time high.
By Alexandra Twin, CNNMoney.com 'senior writer'
October 9, 2008: 3:47 PM ET
NEW YORK (CNNMoney.com) -- Stocks slumped fast and hard on Thursday afternoon - with the Dow falling below 9,000 - as reports that Treasury's may buy stakes in banks failed to reassure investors amid the ongoing credit crisis.
Bank lending remained tight as nervous institutions continued to hoard cash. Treasury prices fell, raising their corresponding yields. The dollar gained versus the euro and the yen. Oil and gold prices fell.
With 15 minutes left in the session, the Dow Jones industrial average (INDU) had lost 630 points, or nearly 7%, after hitting its lowest point since May 2, 2003.
The Standard & Poor's 500 (SPX) index lost 7% after touching its lowest point since May 27, 2003. The Nasdaq composite (COMP) lost 5% after hitting its lowest point since Aug. 14, 2003.
A key measure of investor fear hit an all-time high. The CBOE Volatility index, or the VIX, topped 60.