Caterpillar's grave warning about the US economy's future coupled with the twentieth anniversary of “Black Monday” – the nations largest stock market plummet in a single day – caused stocks to dive and sent shivers through many investors.
Caterpillar Inc. – a top maker of mining and construction equipment – had a 5.3 percent stock decline that was reported to have also dragged the shares of its manufacturers.
The corporation cautioned the economy will be "near to, or even in, recession" in the next year, announcing that many of the company's it supply's, due to a national housing slump, are in recession already.
The warning from Caterpillar caused a stock market downturn with percentage drops at their highest since summer. The Dow and Standard and Poor's stock hit their lowest since since Aug. 9, and the NASDAQ had its biggest daily percentage drop, US News reports, since the global market rout on February 27.
The NASDAQ Composite Index was down 74.15 points and S&P's 500 Index was down 39.45 points. The Dow hit a low of 366 to 13,522 on this anniversary of Black Monday.
The stock plummets sent heightened panic, falling on the twenty year anniversary of “Black Monday,” the worst single day in the Dow's history. On Oct. 19, 1987, the overall market became $500 billion less valuable with the Dow dropping 22.6 percent.
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