Dow plunges 416 on global selloff; computer glitch worsens drop

CBS News

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[Music] how low can it go that's the question facing investors today after a global sell-off led to a free fall on Wall Street at its worst the Dow tanked nearly 550 points but by the closing bell the Dow had recovered just a bit still plummeting 416 points its biggest one-day drop in five years with this drop the Dow has now wiped out all of its gains for the year the NASDAQ plunged more than 96 points heading into the final hour of trading things got really scary the Dow suddenly tanked nearly 200 points in just one minute that instantaneous sell-off was triggered by a computer glitch a flood of stock trades clogged a computer server at Dow Jones and Company leading to a temporary lag in calculating the index Wall Street is expected to once again take its queue from the market action in Asia and Europe some analysts say this selloff could be the beginning of a much needed correction in the US Stock Market you can bed investors will also be paying close attention to Capitol Hill today as Federal Reserve chairman Ben beri returns to testify before the house budget committee and it could soon get harder for some folks to qualify for a mortgage as the Meltdown in the subprime mortgage Market continues all those banks that gave Home Loans to people with bad credit or no credit are now paying the price a lot of those homeowners are now defaulting or going into foreclosure and banks are making it tougher to qualify for a mortgage that's your money want watch click on cbsnews.com to follow all the market action in New York I'm Alexis christopherus

Dow rebounds 52 after 400-point plunge; Bernanke reassures

CBS News

Transcript

[Music] you could almost hear a collective sigh of relief on Wall Street the stock market staged a comeback after Tuesday's Free Fall pulled the Dow down more than 400 points giving the markets its worst day in nearly four years after rallying more than 130 points the Dow Jones Industrial Average finished the day up 52 the NASDAQ Composite added 8 investors gained confidence after some Global markets rebounded and Federal Reserve chairman Ben banki came to the rescue during an appearance on Capitol Hill banki said he still expects the economy to pick up steam but Market Watchers remain unsure if Tuesday's blood bath was just a one hit wonder or a sign of more losses to come the stocks also got a lift from a report that showed the economy grew at a rate of 2.2% in the fourth quarter slower than expected but not as bad as some had feared and you'll have to wait a bit longer for that recovery in the housing market new home sales plummeted more than 16% in January the biggest monthly drop in 13 years new home prices are now down over 2% from a year ago that's your money watch log on to cbsnews.com for the latest business headlines at the New York Stock Exchange I'm Alexis christopherus