Stocks plummeted March 14 after Bear Stearns announced it reached an agreement with JPMorgan Chase to receive temporary funding to address the firm's liquidity crisis.
The Dow Jones industrial average closed below the 12,000 mark, down 1.6%, at 11,951.09; the S&P 500 fell 2.08%, ending at 1,288.14; and the Nasdaq composite closed down 2.26%, at 2,212.49.
The news of the bailout drove Bear Stearns stock down more than 50% in morning trading to $26.85; the stock closed at $30, down $27 from the previous day. The stock hit at 52-week high of $159.36 on April 25, 2007. The news also pressured the financial sector and the broad market amid renewed credit crunch fears.