Tuesday, Sep. 30, 2008
September 31, 1998
513 points (6.4%)
Some of the very stocks that lifted Wall Street to stratospheric heights in
the late '90s — like Yahoo! and America Online — sent the markets
spiraling south. Analysts viewed this bearish run as simple market
correction: once in-favor stocks could no longer rise higher, they were
bound to come back to earth. It just happened a little more quickly than
anyone expected, as confidence among investors had fallen due to reports of
a drop in new home sales and business deterioration among domestic
manufacturers.