In October 2008, the New York stock market experienced extreme volatility and sharp declines, deepening the financial crisis triggered by the Lehman Brothers collapse in mid-September.
Key developments:
• October 6–10: Worst week in Dow history at the time (down ~18%). Global panic, frozen credit markets, and forced deleveraging hit all sectors.
• October 13: A massive one-day rally (+11% on the Dow) after coordinated G7 action and the U.S. Treasury’s plan to inject capital directly into banks.
• Ongoing fear: Despite policy moves (TARP, Fed liquidity programs), markets remained unstable due to continued bank failures, job losses, and earnings shocks.