In the wake of the U.S. House of Representatives' 228-205 rejection of the Bush administration's $700 billion bailout bill, the Dow Jones industrial average plunged 778 points. It was the largest one-day drop in history, though in terms of market percentage lost, it failed to approach the calamitous crashes of 1987, 1929, and 1914.
—Alex Altman & Frances Romero
449 points (4.1%)
The government's $85 billion bailout of AIG did little to pacify traders
still uneasy at the prospect of Lehman's failure, causing a domino effect
among the few remaining banks. As the Dow plunged, investors sought safe
ground — gold jumped more than $70 an ounce, its biggest one-day gain to
date.
