US stock plunge wipes record 1.2 trillion dollars off market value

Agence France-Presse

Posted at Sep 30 2008 09:19 AM | Updated as of Sep 30 2008 05:19 PM

WASHINGTON - Monday's record stock plunge saw approximately 1.2 trillion dollars wiped off the market value -- the first-ever trillion-dollar one-day loss, according to the Dow Jones Wilshire 5000, the broadest measure of market activity.
The biggest-ever loss is almost double the size of the rescue package rejected by the US House of Representatives earlier Monday.
Markets around the world panicked after lawmakers voted down the 700-billion-dollar bailout for the financial system, raising the prospect of deeper financial turmoil.
The Dow Jones Industrial Average sank 777.68 points (6.98 percent) to close at 10,365.45, in its biggest single-day point decline ever.
The second largest point drop came on September 17, 2001, in the wake of the terrorist attacks on New York and Washington.
The 6.98 percentage drop, however, does not make the top 10 greatest percentage losses.
By contrast, on "Black Monday" on October 19, 1987 the Dow Jones index dropped by a 22.61 percentage loss.
"We need to work as quickly as possible. We need to get something done," Treasury Secretary Henry Paulson told reporters at the White House after meeting with President George W. Bush.
"We believe that our plan, and the plan that we developed with congressional leaders and worked so hard, is a plan that works. And we need a plan that works."