The Dow Jones Industrials tumbled over 600 points to quickly fall well below the 9,000 mark. Financials led the drop on continued nervousness about the economy and the credit markets.
Wholesale inventories rose 0.8% in August, double the forecast of 0.4%. But sales fell 1.0%, pushing the inventory-to-sales ratio, or how many months it would take businesses to liquidate stockpiles, from 1.08 to 1.10. The rise in inventories in recent months indicates that an involuntary buildup in goods occurred amid softer-than-expected economic conditions.
The Dow Jones Industrial Average declined 679 points (7.3%) to close at 8,579, the S&P 500 Index fell 75 points (7.6%) to 910, and the Nasdaq Composite dropped 95 points (5.5%) to 1,645. Crude oil fell $2.36 to $86.59 per barrel, and gold rose $14.60 to $921.10 per ounce.
Magnificent Seven Update
