Wall Street Celebrated Inauguration Day with 332-Point Plunge of the Dow

Looks like the Wall Street doesn’t have too much confidence in Barack Obama. Why?

The day after he won the presidential election, November 5, 2008, the Dow Jones Industrial Average lost 486 points. Today, the day Obama was sworn in as the 44th President of the county, the Dow tumbled 332 points, the worst inauguration day drop, to close at the lowest level since November 20, 2008. The 486-point lose on November 5th was also the worst on the day after the election.

Today, financial shares again weighed on stocks as investors feared that banks, such as Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C), will need to raise more capital to offset losses. According to Bloomberg, State Street Corp. (STT) plummeted 59% after the largest money manager for institutional investors said its unrealized bond losses almost doubled, while BAC tumbled 29% and WFC 24%. Steep losses of financial shares pushed the S&P 500 Financial Index down 17% for the day to the lowest level in nearly 14 years.

The country is facing what Warren Buffett described asĀ  “an economic Pearl Harbor”.

Obama will lead the country out of the recession, but how soon?

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2 Responses to “Wall Street Celebrated Inauguration Day with 332-Point Plunge of the Dow”

  1. Rendell @ BrandlessBlog.com |  Jan 21, 2009 at 12:36 am

    Hi,

    That is exactly what they meant by:
    Buy on Rumors, Sell on Strength

    The stimulus will take time to creep into the system, so I do not think this change of power will show any significant differences to the market as a whole.

    Rendell
    BrandlessBlog.com