Dow Jones in official correction
Credit worries sent North American markets tumbling anew on Monday, with all of the key U.S. market benchmarksnow squarely intoofficial correction territory.
A drop of more than 10 per cent from the previoushigh-water markis the widely accepted definition of a technicalcorrection. The Dow Jones industrial average, the Nasdaq composite index, and the S&P 500 index all fell into that category on Monday.
The Dow Jones industrial average dropped 237 points to end the day at 12,743. That's a drop of 10.2 per cent from its record high of 14,198, reached on Oct. 11.
The Nasdaq composite index slid 55 points to 2540, down 11.2 per cent from its record high of 2861, set Oct. 31.
The closely followed S&P 500 index —a more broadly based index than the Dow — dropped 33 points to 1407. That's off 10.7 per cent from its record intraday high of 1576.
U.S. markets fell after Europe's biggest bank, HSBC Holdings, said it would inject $35 billion US intotwo beleaguered funds it manages.
Canadian stocks— as measured by the benchmark S&P/TSX composite index — entered correction territory in mid-August as the credit crunch rattled markets.
The benchmark Canadian stock indextumbled 146 points Monday to close at 13,321 as every industry sector lost ground. The index is currently not in a technical correction, as it's downnine per cent from itsrecord intraday high of 14,646.