Elon Musk Says Apple 'Threatened to Withhold Twitter' From App Store
Ron Klain Taking It Up a Notch With Gaslighting the American People in...
It’s Time to Escalate
'Our City Is in Peril': Portland Store Forced to Close Over Rampant Crime
GOP Rep: We're Not Going to Have a Rail Strike
Elon Musk Tweeted a Meme About CNN...Then They Melted Down
Apple Again Comes to Aid of Chinese Communist Party Amid Protests
Woke Tales II: SF Fires its Popular, Competent Elections Administrator. Can You Guess...
Your Midterm Campaign Donations Might Not Have Gone Where You Thought
Teen Confesses on Instagram to Murdering Another Child, Police Say
Top House Democrat Compares Buying Firearms to Buying Slaves
Why a Man Who Killed Wife Over Thanksgiving Could Have a Robust Defense
Schlichter: Why Reward Mediocrity?
White House Can't Get Its Story Straight on Biden's Role in Railroad Union...
Fauci Is on His Farewell Tour and It's Going Exactly How You'd Expect

DOW Drops 1000 Points, Rebounds To 300 Point Loss

The Dow dropped nearly 1000 points before rebounding to a 300-point drop on Thursday afternoon. The drop narrowly avoided the point where stock trades would have been halted for a full hour based on Wall Street regulations. If the drop would've been 1,100 points, futures would've continued trading, but stock trading would've been on hiatus.


Initial analysis was uncertain as to the cause of the crash. The blame was first pinned on unrest in Greece, and then reports emerged of a faulty trade involving Proctor and Gamble. A trader or computer could have mis-entered a number that devalued the stock and set automated stock-selling mechanisms into play. Other reports said that supposed faulty trade didn't occur until the Dow was already in freefall.

Greek unrest is still a prime suspect  -- their financial turmoil is now threatening Portugal, Spain, and Ireland. The Greek bailout deal isn't finalized, and the markets are reacting, said Fox News' Neil Cavuto.

"This is a classic panic response to a country situation where they're spending more than they're taking in,"
said Cavuto.

Even if Greece does get the money, and the civil unrest subsides, the issue of other countries' solvency is still uncertain, and investors responded accordingly. E.U. bond dealers are demanding full details of Greece's bailout before they will sign off on the plan.

Another factor could have been the Senate's approval of an amendment that would end "too big to fail," which was being discussed as part of the financial reform bill. The major financial houses all suffered significant losses as the result of the stock market volatility.

Join the conversation as a VIP Member


Trending on Townhall Video