Crikey

The Dow Jones was  hit by its biggest-point loss ever overnight -topping its post-9/11 loss - as the US House of Representatives narrowly rejected the Bush administration’s proposed $700 billion bailout bill.

The Wall Street Journal Market Watch reported that the Dow industrials plunging 777 points - or their worst point drop on record - as the House of Representatives voted down the bailout package.

“The bill would’ve decreased uncertainty, at least a little,” said Marc Groz, managing member, Topos LLC. “Instead, the failure of the bill has sent uncertainty — and the VIX [the market’s fear gauge] soaring. This is a fear-driven market.”

“The Dow Jones Industrial Average finished at 10,365.45, down 777.68 points, or 7%, giving the blue-chip index its worst point loss in its history, topping September 17, 2001, when it shed 684 points.”

Read the full story here.