Wall Street still nervous after Senate passes bailout
Wall Street stocks swung lower at the opening as investors remained cautious about the global banking crisis despite US Senate passage of a massive financial rescue package.business Updated: Oct 02, 2008 22:45 IST
Wall Street stocks swung lower at the opening as investors remained cautious about the global banking crisis despite US Senate passage of a massive financial rescue package.
In the first trades, the Dow Jones Industrial Average dropped 76.14 points (0.70 percent) to 10,754.93 and the tech-heavy Nasdaq shed 15.95 points (0.77 percent) to 2,053.45.
The Standard & Poor's 500 declined 8.02 points (0.69 percent) to 1,153.04.
The market remained skittish about the widening global banking crisis even after the Senate approved a 700-billion-dollar financial rescue package with some additional tax breaks and additions and sent it back to the House of Representatives, which rejected a similar measure Monday.
"Despite the fact that it passed overwhelmingly in the Senate, its passage isn't guaranteed in the House," said John Wilson, equity strategist at Morgan Keegan.
"I would expect the financial markets to breathe a sigh of relief when the (the bill) passes, but I don't expect the clouds to part and a host of angels to appear in the heavens singing hallelujahs. It will be a start, but there is a lot to work through and a lot that is unknown."