Wall St drop
NZPA-AP New York The U.S. stock market took a sharp drop on Thursday (early yesterday N.Z. time), abruptly reversing course after its rally over the past three sessions. The Dow Jones average of 30 industrials fell 34.73 to close at 1768.56, for its biggest decline since the record 86.61-point drop two weeks ago.
Analysts said traders regarded the market’s recent rally as suspect, because it came on light volume and didn’t seem to signal any strong shift toward more positive sentiment
In addition, they cited
fears that weakness in prices of stock-index futures might prompt renewed com-puter-program selling of stocks by professionals engaged in the strategy known as index arbitrage. Brokers said the general mood in the markets remained cautious after the record-setting decline in stock prices early this month. The widespread view on Wall Street is that it will take a few weeks at least for investors’ confidence to recover from that jolt Declining issues outnumbered advances by about three to one on the New York Stock Exchange.
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Press, 27 September 1986, Page 27
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172Wall St drop Press, 27 September 1986, Page 27
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