U.S. stocks suffered their steepest single-day losses in roughly six years on 27 February 2007, as a worldwide wave of selling dragged major indexes sharply lower. The Dow Jones Industrial Average closed down 400 points (3.17 percent) at 12,232.26, having briefly dropped as much as 540 points during an extremely volatile afternoon session.
The Nasdaq composite fell 94.19 points (3.76 percent) to 2,410.33, while the S&P 500 shed 48.52 points (3.35 percent) to finish near 1,400.84. A sudden drop of roughly 250 points in the Dow late in the day was linked by analysts to automated program trading.
The selloff was set off in part by the largest single-day decline in China's Shanghai Composite Index since 1997, which rattled investor confidence worldwide. European markets closed 2 to 3 percent lower on average, with London's FTSE 100 off 2.31 percent, Paris's CAC 40 down 3.02 percent, and Frankfurt's DAX losing 2.96 percent. Mining and metals stocks were hit especially hard on fears of reduced Chinese demand for raw materials.
Investor sentiment was further shaken by comments from former Federal Reserve Chairman Alan Greenspan, who cautioned that signs pointed to the current U.S. economic expansion cycle nearing its end, as well as by rising concerns over Iran's nuclear program.
Historical summary. TurkishPress restated this wire report, first published in February 2007, in its own words.