The Microsoft judgement continued to affect Wall Street yesterday, with damage done to the European and Tokyo exchanges as investors unloaded their dot com and IT investments.
The Dow, Nasdaq and Standard and Poor’s Indices all swung wildly. Nasdaq moved more than 634 points to close at 4,148.89, down 74.79 points. The Dow lost 57.09. Japan’s Nikkei lost one per cent on the day, and the UK’s FTSE Index also lost 0.5 per cent.
It was a busy day for traders, Associated Press reports Terrence O’Donnell, trading clerk with Salomon Smith Barney, said: "I was so busy, I didn’t know how bad we were down. I was buried in paper."
The New York Stock Exchange witnessed frenetic activity, with sell orders piling up at the trading posts, this was an intense panic, evoking memories of the 1997 collapse caused by the breakdown of the Far Eastern and Russian markets, according to analysts.
The 1997 collapse of the Far-Eastern markets was followed by an exponential rise in the value of IT and Internet-related stocks, as investors found new homes for their investment capital. Analysts across the board have been widely reported as seeing the events of these few days as inevitable, they condemned dot com stocks as "overvalued".
Even the millennium-bug proof Apple Computer lost on the day, closing at $127.3125, down from $132.625. Microsoft closed at $88.5625. On Easdaq this morning, both Apple and Microsoft showed slight recovery, but revaluation of stocks continues on the European Technology exchange. Trading on the London Stock Exchange has been postponed, due to ‘technical problems’ so far this morning. This is not thought to be related to these events. It’s thought that the painful revaluation process should stabilize this week.