Congress rejected a $700 billion bank rescue plan and markets delivered what was then the Dow’s largest single-day point loss.
On September 29, 2008, the Dow Jones Industrial Average dropped 777.68 points after the House rejected a $700 billion financial-rescue plan.
The S&P 500 fell 8.8% and the Nasdaq 9.1% as investors confronted frozen credit markets, bank failures and the accelerating financial crisis.
The raw point record has since been surpassed, but the day remains a useful reminder that market plumbing and confidence can matter more than conventional valuation when the financial system itself is under stress.