This week in trading history saw Bitcoin breaking two records within 24 hours, Enron stock fell 75%, John F Kennedy’s funeral took place, and the U.S. launched an air bombardment on Iraq...
The Wright Company started trading for the first time with $1m in capital. In 1915 the company merged with the Glen L. Martin Company, forming the Wright-Martin Company. However, the company ceased operations in 1919 and the company was renamed Wright Aeronautical. They went onto making the Wright Whirlwind engines that changed aviation forever.
The Dow closed at 382.74 on this day, marking the recovery of the markets from its pre-Great Depression after 25 years.
After a 554.26 point fall, the NYSE invoked the “circuit breaker” and put a halt to trading. As this was the first time the New York Stock Exchange had used the circuit breaker system, many traders found it rash and unnecessary, so the exchange changed the rules so that trading could only be stopped when the Dow had dropped by at least 10%.
Dale Carnegie, author of How to Win Friends and Influence People, was born on this day. Carnegie influenced people through his personal charm as a way to gain financial success. Carnegie’s self-help bible was an instant success, selling over 15 million copies and continues to be sold today.
John F Kennedy’s funeral took place in Washington DC, with 800,000 mourners turning up to pay their respects to their murdered president.
President Eisenhower suffered a stroke and the markets fell 2% on hearing the news. In an attempt to reassure the country, Eisenhower gave a press conference a few days later, however due to his impaired speech it resulted in the opposite effect. The Dow dropped nearly 13%.
The stock market opened for the first time since closing following the news of JFK’s assassination. The Dow had its largest single day point gain to date, with a 4.5% increase.
Gerald R. Ford was approved by the U.S. senate as the nation's 40th vice president after Spiro T. Agnew resigned due to pleading guilty to income tax evasion.
The U.S. Bond Market reopened after being closed since 31st July due to WW1. The stock markets didn’t reopen until 12th December, and the bond market opening early was an attempt at raising money for the war and recovery.
Enron stocks fell 75% due to Dynegy withdrawing their offer to merger with the company. Word had spread about Enron’s debt and accounting troubles and no company wanted to work with them. Shares closed just over $1 per share. The company declared bankruptcy on the 2nd December.
Bitcoin hit $10,000 for the first time, and 12 hour later it hit $11,000. The price was up 900% for the year. The price rose as high at $19,700 before collapsing. In November 2020, the price of Bitcoin was over $18,000.
The United Nations notified Iraq that it had until 15th January to leave Kuwait. Iraq ignored the warning and on the 17th January the U.S. air bombardment began. In July 1990 the Dow was teetering on the edge of the 3,000 level, however as Saddam Hussein’s aggression increased the Dow dropped 21%.