What happened to the stock market in September 2001?
Stock exchanges closed between September 10, 2001 and September 17, 2001. After the initial panic, the DJIA quickly rose for only a slight drop.
What was the longest time the stock market was closed?
The 2001 market closure was the longest period of time the U.S. markets had remained closed since 1933. On the first day stocks resumed trading, the market fell 7.1%. The Dow finished the week down more than 14%, and the S&P 500 finished down 11.6%, wiping out roughly $1.4 trillion in value over a five-day stretch.
What happened on the 11th day of September 11 2001?
September 11, 2001: 10:00 a.m. ET NYSE, Nasdaq shut after NY, DC plane crashes NEW YORK (CNNfn) - U.S. stock markets closed Tuesday after an apparent terrorist attack using aircraft destroyed New York's World Trade Center and damaged the Pentagon outside Washington. Treasury bond securities, often a safe-haven amid uncertainty, rose.
Is the stock market vulnerable to a major disruption 20 years later?
The U.S. stock market has risen dramatically over the past 20 years despite the relatively short-term sell-off after the Sept. 11 attack. The stock market even today remains vulnerable to a major disruption, 20 years after Sept. 11.
What was going on in 2001?
What Else Was Going On In The World? In 2001, Timothy McVeigh was executed for bombing a federal building in Oklahoma City. Congress passed a new law requiring all airport security screeners be U.S. citizens and undergo criminal background checks. The average cost of a new house was $136,150.
What plane crashed into the North Tower?
US Attacked. American Airlines Flight 11 crashed into the World Trade Center North Tower at 8:46 a.m. and American Airlines Flight 175 hit the South Tower less than 20 minutes later at 9:03 a.m.
When did the stock market close?
Stock exchanges closed between September 10, 2001 and September 17, 2001. After the initial panic, the DJIA quickly rose for only a slight drop. On Tuesday, September 11, 2001, the opening of the New York Stock Exchange (NYSE) was delayed after the first plane crashed into the World Trade Center 's North Tower, ...
What happened to the airline industry after 9/11?
Share prices of airlines and airplane manufacturers plummeted after the attacks. Midway Airlines, already on the brink of bankruptcy, shut down operations almost immediately afterwards.
What were the losses of 9/11?
The losses included business interruption ($11.0 billion), property ($9.6 billion), liability ($7.5 billion), workers compensation ($1.8 billion), and others ($2.5 billion). The firms with the largest losses included Berkshire Hathaway, Lloyd's, Swiss Re, and Munich Re, all of which are reinsurers, with more than $2 billion in losses for each. Shares of major reinsurers, including Swiss Re and Baloise Insurance Group dropped by more than 10%, while shares of Swiss Life dropped 7.8%. Although the insurance industry held reserves that covered the 9/11 attacks, insurance companies were reluctant to continue providing coverage for future terrorist attacks. Only a few insurers continue to offer such coverage.
How long did the gas price spike last?
Gas prices in the United States also briefly shot up, though the spike in prices lasted only about one week. Currency trading continued, with the United States dollar falling sharply against the Euro, British pound, and Japanese yen.
How many jobs were lost in New York City after 9/11?
New York City. In New York City, approximately 430,000 jobs were lost and there were $2.8 billion in lost wages over the three months following the 9/11 attacks. The economic effects were mainly focused on the city's export economy sectors. The GDP for New York City was estimated to have declined by $30.3 billion over the last three months ...
How much did the stock market drop in 2001?
The attacks themselves resulted in approximately $40 billion in insurance losses, making it one of the largest insured events ever.
Why was the New York Stock Exchange evacuated?
The London Stock Exchange and other stock exchanges around the world were also closed down and evacuated in fear of follow-up terrorist attacks.
Market Reaction
Airlines and Insurers Take A Hit
- Airline stocks experienced among the worst declines due to the attack. American Airlines(AAL) stock dropped 39% between Sept. 11 to the close on Sept. 17, and United Airlines(UAL) plummeted 42%. Insurance companies reportedly eventually paid $40 billion in claims related to the Sept. 11 attack.2 Among the biggest losers was Warren Buffett's Berkshire Hathaway.3Mos…
Investing in Protection
- Some stock sectors, however, experienced major gains after the attacks. Certain technology companies, as well as defense and weapons contractors, saw their shares increase. Many of the buyers were investors anticipating a boost in government business as the country prepared for the long war on terror. Stock prices also spiked for communications and pharmaceutical firms. …
The Market Remains Vulnerable to A Major Disruption
- The Sept. 11 attack shut the stock market for nearly a week and revealed its vulnerability to physical destruction. While the NYSE building wasn’t damaged, many communications links were severed by the fall of the two trade towers. And the reopening of the NYSE was hampered by the Ground Zero recovery operation nearby.4 In response, the NYSE and ot...
The Market and Economy in The Past 20 Years
- Over the long term, the U.S. stock market and economy have enjoyed strong growth despite the negative short-term impact of the attack. In the nearly 20 years since Sept. 11, the S&P 500 index has risen nearly four-fold, despite periods of steep declines, including the 2007-2008 financial crisis.5 And the U.S. economy has enjoyed several long expansions during that period amid maj…