Toronto Stock market takes biggest one-day plunge in seven years
5 hours ago
TORONTO - The Toronto stock market has taken its biggest one-day plunge in seven years, losing 4.75 per cent as fears of a U.S. economic downturn sparked a violent share selloff.
The Toronto Stock Exchange dropped 604.98 points to finish the day at 12,132.14, trimming almost $90 billion off the market's total value. That's on top of a fall last week that wiped out all the market's gains for 2007.
The last time the market fell so far was a 6.5 per cent drop in February 2001, when the tech bubble burst and Nortel Networks (TSX:NT) shares rapidly lost value.
The stocks plunge could spill over into other sectors of the economy if consumers start tightening their belts and stop spending on everything from cars and houses to clothing and other retail goods.
American markets were closed Monday, but Canadian investors appear unmoved by an economic stimulus plan unveiled by president George Bush on Friday.
The plan, which requires approval by Congress, calls for about US$145 billion worth of tax relief to encourage consumer spending.
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