| Stocks Plummet With The Dow Falling More Than 360 Points - U.S ...
11/1/2007 4:47:35 PM Stocks plunged on Thursday, as the Fed-induced euphoria quickly gave way to a broad based sell-off after Citigroup (C) was downgraded by CIBC World Markets, sending financial stocks on a downward spiral.
Wednesday afternoon, the Federal Reserve cut interest rates by 25 basis points, sending the markets on a late afternoon rally. However, the Fed used language in their policy statement that suggested it is not likely to cut rates again in December, depressing the markets today.
Additional downward pressure came from Credit Suisse (CS), which reported a 31 percent decrease in third-quarter income due to the write-down of mortgage related holdings.
The markets opened Thursday's session with substantial losses and were unable to overcome the extreme selling pressure throughout the session.
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