Stock World Goes High Tech
On Monday, July 7, the Dow Jones index of 30 leading industrial stocks dropped 61.87 points, the biggest one-day plunge recorded on Wall Street in almost four years. The next morning, halfway around the globe, the Nikkei stock index fell sharply as trading opened in Japan on the Tokyo Stock Exchange. Hours later, at the start of the business day in London, the Financial Times industrial share index plunged by a record 30.1 points.
While all three of the world's biggest stock exchanges later recovered, July's events underscored the growing interdependence among the world's financial centers. A temporary downturn in one market has an immediate effect on the others, as investors shift huge sums of money among a growing number of ...