Monday, December 1, 2008
Causes of Cyber Monday Plummet
The Dow Jones Industrial Average, which had leapt nearly 17% over the previous five sessions, tumbled 7.7% on Monday, off 679.95 points to end at 8149.09, off 39% on the year. The losses accelerated late in the session, leaving all 30 of the Dow's blue-chip components lower on the day. A series of reports out Monday showed pressure on manufacturers around the globe. The China Federation of Logistics & Purchasing said that its purchasing managers' index fell to 38.8 in November, the lowest since the index launched in 2005. Similar manufacturing measures for Britain and the eurozone also hit all-time lows. In the U.S., the Institute for Supply Management said its index of factory activity fell to 36.2 last month from 38.9 in October. Against that backdrop, the National Bureau of Economic Research confirmed that the U.S. is in a recession that began in December 2007.