Dow Jones closes down more than 500 points
New York — (AP) - The stock market has suffered one of its worst days in years as investors reacted to a stunning reshaping of the landscape of Wall Street that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.
The Dow Jones industrials closed down more than 504 points, their sixth-largest point drop ever, and their worst showing since they lost 508 in the October 1987 crash.
Investors were shaken by Lehman's bankruptcy filing and what was essentially a forced sale of Merrill Lynch to Bank of America for $50 billion in stock.
While those companies' situations had reached some resolution, the market remained anxious about other companies. Among them: American International Group Inc., which is seeking emergency funding to shore up its balance sheet.
(Copyright 2008 by The Associated Press. All Rights Reserved.)