No Sign of Liquidity Bust in Biggest Stock Rout Since 2008
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The worst stock decline since December 2008 was absorbed by the market and while some investors panicked, there were no signs liquidity was withdrawn as in the selloff of May 2010, traders said.
The Standard & Poor’s 500 Index retreated 6.7 percent to 1,119.46 at 4 p.m. in New York, closing at its lowest level of the day. The gauge slumped 11 percent in three days and fell to the lowest since September 2010. More than 30 stocks fell for each that rose on U.S. exchanges, the broadest selloff since Bloomberg began tracking the data in 2004. Almost 18 billion shares changed hands, the fifth-highest volume since mid-2008, according to data compiled by Bloomberg.