MINNEAPOLIS (WCCO) – Fears about the global economy led to the biggest panic in financial markets since the 2008 financial crisis.

The Dow plunged nearly 513 points Thursday, its biggest point decline since falling 677 on Dec. 1, 2008 in the midst of the financial crisis. The last time the market recorded a larger percentage drop was in early 2009.

Only three of the 500 stocks in the Standard & Poor’s 500 index had gains. Oil fell by 6 percent. The yield on the two-year Treasury note hit a record low as investors sought out relatively stable investments.

All three major stock indexes are down 10 percent or more from their previous highs, a drop-off that is considered to be a market correction. A drop of 20 percent or more signifies the start of a bear market, an extended period of stock declines.

The Dow Jones industrial average was down 512.76 points, or 4.3 percent, to 11,383.68. Thursday’s losses turned the blue-chip stock index negative for the year.

The S&P 500 — the benchmark for most mutual funds — lost 60.20, or 4.8 percent, to 1,200.14. It is now down 12 percent from its recent high of 1,363 reached on April 29. The Nasdaq composite shed 136.68, or 5.1 percent, to 2,556.39.

Investors are increasingly concerned about the possibility of another recession in the U.S. and a debt crisis in Europe.

Despite the downward trend, there’s a couple Minnesota companies still managing to emerge as rising stars.

3M for example, just released second quarter earnings showing a 14 percent rise in sales to the tune of a record $$7.7 billion.

Target also saw a four percent rise in July sales.

WCCO-TV asked Financial Consultant Bruce Helmer with the Wealth Enhancement Group out of Chaska why he believes these companies have been able to defeat the odds.  He said in large part, it’s because they are multi-national with trading partners around the world.

“Broadly diversified, smartly, well-run companies are going to well over the long-term.  On a day to day basis, the stock price can take a hit, but long-term, if they’re well-managed, they’ll recover,” said Helmer.

Here is a full report from CBS News on Thursday’s stock market plunge

Comments (11)
  1. Redneck Purist says:

    Interesting. The market plunges after the debt deal and no mention of Obama in the story. The dems and Obama told us the market would crash, the world would end and our credit would be down-graded if we didn’t raise the debt ceiling. Now it’s raised and lookie lookie. The markets have crashed and I hear they’re probably going to lower our credit rating anyway. Not a peep from the media about the real cause of it. That being our massive runaway train of spending and debt. Too bad all these brilliant liberals aren’t quite smart enough to see that their policies are the cause of this. They’re still stuck on blaming Bush. Epic liberal fail.

    1. Mike says:

      The markets tumbled based on unemployment, (Republican sponsored) and the falling Euro, (Republican deregulated Banksters). Our unemployment will rise due to Republican policies and they will try to blame the President. Anyone with half a brain can see that Republicans are doing everything they can to make the economy look worse before the elections. Too bad your not smart enough to figure this out because trying to breed your sister.

      1. dan says:

        Well i sure hope you give Republicans the credit for the higher than expected job numbers this morning? Oh probably not form the party of blame. Bad news is blamed on Bush while anything positive Obama gets the credit.

  2. Tim says:

    Proof positive. Government cannot help the economy. However, government can sure hurt it.

    The chickens are coming home to roost.

  3. See BS says:

    Obama’s economy is so bad — Snoop dogg is eating “regular” brownies.

    1. M says:

      LMFAO. That a good one. Bow wow wow wow yipe ay yipe ay.

  4. Mark from MN Tax Waste says:

    Welcome to the United States of Greece

  5. Fast Freddie says:

    Maybe we should build more bike paths to stimulate the economy.

    I got another idea: Let’s all change out the curly light bulbs and use candles, that would help reduce our footprint.

    Don’t look for politicians to solve our problems, they caused them. Bring our taxpayer dollars back locally by ending the income tax so we can take care of our families and not the Washington crooks.

  6. Donna says:

    I’ve got an idea for a spending cut! Politician’s (lifetime) salaries of upwards of 6-figures (plus benefits). Do the math – that would be substantial. Are there any politicians EARNING that kind of money?

  7. Carl says:

    Obamanomics is finally kicking in. I guess when you are at the bottom there is only one direction you can go. I wonder how long it will take him to blame Bush for all his economy woes? Do I hear another Stimulus around the corner???

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