The Dow Jones Industrial Average plummeted to a historic low on September 15, 2008, marking its biggest one-day point drop ever. This dramatic downturn occurred in the wake of the Lehman Brothers bankruptcy, sending shockwaves through the global financial system.

The collapse of Lehman Brothers, a major investment bank, intensified fears about the stability of the financial sector. Investor confidence eroded rapidly, leading to a massive sell-off in the stock market. The Dow’s sharp decline reflected the growing anxiety and uncertainty surrounding the financial crisis.

Several factors contributed to the market’s plunge:

• Loss of Confidence: Lehman’s failure shattered investor confidence in the financial system.
• Credit Freeze: The crisis led to a severe tightening of credit markets, making it difficult for businesses to obtain funding.
• Economic Uncertainty: The market downturn reflected broader concerns about the health of the global economy.

The record point drop served as a stark reminder of the severity of the financial crisis and its potential impact on the economy. The event spurred government intervention and efforts to stabilize the financial system.