what was the stock market at the end of october 2007

by Jacinto Collier III Published 3 years ago Updated 2 years ago

Full Answer

What was the biggest drop in the stock market in 2008?

The Balance The stock market crash of 2008 occurred on Sept. 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading. 1 Until the stock market crash of 2020, it was the largest point drop in history.

What year did the stock market crash in 2008?

From those October 2007 highs, the market spent nearly a year slowly declining, and then a stock crash hit on September 29, 2008. Those losses extended over the next few months until they bottomed out in March 2009. How Long Did It Take to Recover From the 2008 Stock Crash?

What happened in 2007 when the Fed released minutes?

On April 11, 2007, the Federal Reserve released the minutes of the March Federal Open Market Committee meeting. The stock market dropped 90 points in disapproval. Worried investors had hoped for a decrease in the fed funds rate at that meeting. Instead, the Fed was worried more about inflation.

What did the Fed predict for the economy in 2007?

On March 2, 2007, the Federal Reserve Bank of St. Louis President William Poole said that the Fed predicted the economy would grow 3% that year. 6 Poole added that he saw no reason for the stock market to decline much beyond current levels. He said stock prices were not overvalued as they were before the 2000 decline.

When did the S&P 500 close?

On Oct. 9, 2002, the S&P 500 closed at 776.76, and hit an intraday low of 768 during the next session, before rebounding. Since that time, the S&P 500 has jumped more than 100 percent. According to a recent survey by Standard & Poor's Sam Stovall, this is the fourth longest bull market on record, with the bull run between 1990 and 2000 taking ...

What did Mendelsohn say about the minutes?

Mendelsohn said that investors were a little cautious leading into the minutes but once they saw that there was nothing particularly surprising in the minutes, they redoubled their efforts to move stocks higher.

Dow Finishes at All-Time High, Smashes 2007's Record Cse

Almost four years after the bear-market low, the Dow Jones Industrial Average pierced through levels last seen in 2007 to close at a record high of above 14,200 on Tuesday, boosted by an upbeat ISM non-manufacturing index and amid ongoing monetary support from the Federal Reserve.

The Luxury Curse Scam

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A Glimpse of Our Future by Looking at the Past?

Some claim that there is a four year cycle that the market follows, and there is some evidence to that. Of course, nothing is certain and the time periods of the cycle can vary, but there is some truth to it all.

2005 – Today

Most of 2005 was nothing to write home about as the markets were basically drifting sideways. Once 2006 rolled around, the market again started to rally. For the next two years, the DJIA tacked on over 30% and set new record highs.

The Big Picture

As investors, most of us tend to forget about all of the good years and only focus on the bad. The broad markets have been heading up for about four years, so the thoughts of what happened in 1999-2002 are well behind us.

Why did the stock market crash in 2008?

The Dow Jones Industrial Average fell 777.68 points in intraday trading. 1 Until the stock market crash of 2020, it was the largest point drop in history. The market crashed because Congress rejected the bank bailout bill. 2 But the stresses that led to the crash had been building ...

When did the Dow go up in 2009?

Soon afterward, President Barack Obama's economic stimulus plan instilled the confidence needed to stop the panic. On July 24, 2009, the Dow reached a higher plane. It closed at 9,093.24, beating its January high. 34 For most, the stock market crash of 2008 was over.

What was the Dow Jones open at?

The Dow opened the year at 12,474.52. 1 It rose despite growing concerns about the subprime mortgage crisis. On Nov. 17, 2006, the U.S. Commerce Department warned that October's new home permits were 28% lower than the year before. 3 But economists didn't think the housing slowdown would affect the rest of the economy. In fact, they were relieved that the overheated real estate market appeared to be returning to normal.

What was the Dow's intraday low in 2008?

The Dow dropped to an intraday low of 11,650.44 but seemed to recover. In fact, many thought the Bear Stearns rescue would avoid a bear market . By May, the Dow rose above 13,000. 1 It seemed the worst was over. In July 2008, the crisis threatened government-sponsored agencies Fannie Mae and Freddie Mac.

When did the bailout bill pass?

20 The Labor Department reported that the economy had lost a whopping 159,000 jobs in the prior month. 21 On Monday, Oct. 6, 2008, the Dow dropped 800 points, closing below 10,000 for the first time since 2004. 22

Did the Dow Jones crash cause a recession?

Like many other past stock market crashes, it did not lead to a recession. The correction ended in August 2018, and the Dow ended 2018 at 23,327.46. 39 In 2019, it set a record of 27,359.16 in July. 40 It then began declining due to concerns about trade wars initiated by President Donald Trump. 41 .

What was the 2007 financial crisis?

Updated April 25, 2021. The 2007 financial crisis is the breakdown of trust that occurred between banks the year before the 2008 financial crisis. It was caused by the subprime mortgage crisis, which itself was caused by the unregulated use of derivatives . This timeline includes the early warning signs, causes, and signs of breakdown.

How much did the Dow Jones Industrial Average rise in 2007?

On March 6, 2007, stock markets rebounded. The Dow Jones Industrial Average rose 157 points or 1.3% after dropping more than 600 points from its all-time high of 12,786 on February 20.

Why did the Fed cut back on lending to each other?

They were starting to cut back on lending to each other because they were afraid to get stuck with subprime mortgages as collateral. As a result, the lending rate was rising for short-term loans.

Why did hedge funds use derivatives?

Since hedge funds use sophisticated derivatives, the impact of the downturn was magnified. Derivatives allowed hedge funds to borrow money to make investments. They did this to earn higher returns in a good market. When the market turned south, the derivatives then magnified their losses.

What is a share of stock?

A share of stock is a piece of that corporation. Corporate earnings depend on the overall U.S. economy. The stock market then is an indicator of investors’ beliefs about the state of the economy. Some experts say the stock market is a six-month leading indicator .

What did Alan Greenspan say about the 2007 recession?

4 A recession is two consecutive quarters of negative gross domestic product growth. He also mentioned that the U.S. budget deficit was a significant concern. His comments triggered a widespread stock market sell-off on February 27.

What happened in 2008?

The crisis in banking got worse in 2008. Banks that were highly exposed to mortgage-backed securities soon found no one would lend to them at all. Despite efforts by the Fed and the Bush Administration to prop them up, some failed. The government barely kept one step ahead of a complete financial collapse.

Overview

The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the financial crisis of 2007–2009. The S&P 500 lost approximately 50% of its value, but the duration of this bear market was just below average, allegedly due to extraordinary interventions by governments and central banks to prop up the stock market.

Opinions regarding the cause

During the bear market a heavy debate ensued as to whose fault the falling market was. The political parties were heavily divided during this period. For the most part there were three camps: ones that simply blamed the economy, others that wanted to pin the passing Bush Administration and others that wanted to push the blame on the newly arriving Obama Administration.
In February 2007, a coming recession and bear market was predicted by Paul Lamont due to a g…

Finding a bottom

President Obama on March 3, 2009 said "What you're now seeing is profit-and-earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it," probably meaning price-earnings ratio. Many stocks were trading at low P/E levels despite first quarter strong earnings. On the same day, David Serchuk of Forbes magazine says he feels that the market will turn around when housing prices stabilize and oil prices rise ag…

Building a technical bull

On Tuesday, March 10, Vikram Pandit the CEO of Citibank, said that his bank has been profitable the first two months of 2009 and was currently enjoying its best quarterly performance since 2007. On March 12, Ken Lewis, CEO of Bank of America, declared that bank had also been profitable in January and February, that he didn't foresee the bank needing further government funds, and that he expected to "see $50 billion in 2009 pre-tax revenue". The announcements ca…

Bonds

U.S. government bonds did well, especially longer terms. Yields dropped during this time period, part of a long-term bull market. High-grade corporate bonds and muni bonds also performed well. However, high-yield bonds had very bad performance, although they turned up coincident with the bull market in stocks.

Other markets

The Nikkei 225 average went from 18,262 on July 9, 2007 to 7,055 on March 10, 2009. However, the yen also went up 24% compared with the U.S. dollar during this time.
The FTSE 100 went from 6,731 on October 12, 2007 (and 6,698 in July) to 3,512 on March 3, 2009 (about 48%). However, the pound sterling went down about 28% during this time (thus about 62% overall).

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