Like humans, the stock markets do not like negative news. The other similarity between the two is that they both know how to recover after every setback. On the morning of September 11, 2001, there was a terrorist attack on the World Trade Tower and the Pentagon in America. First, an American Airlines plane hit the North Tower at 8:46 am. Exactly 17 minutes later at 9:03 a United Airlines plane hit the South Tower. Both these towers were very close to Wall Street. The US stock markets remained locked on the day of the attack. That day was Tuesday. The purpose of telling you this story is that the stock market never ends.
US stock exchanges remained locked for a week
Fears of panic, panic selling and possible loss in the value of shares kept the US stock markets closed till 16 September. The New York Stock Exchange and Nasdaq open on September 17 (Monday). The Dow Jones fell 684 points, or 7.1 percent, on that day. The US stock markets continued to decline throughout the week. As of Friday, the Dow Jones was down 14 per cent and the Nasdaq 16 per cent. The S&P 500 also lost 11.6 per cent during the week. During this, 1.4 trillion dollars of investors were sunk.
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Shares of American companies gave strong returns
But, after some time on the American stock exchange, the silliness returned. Since then, American companies have made investors rich. American big companies have multiplied their investors’ money during this period. For example, in September 2001, the stock price of Apple was just $0.31. The stock is currently priced at $153.30. In this way, this stock has made investors’ money three hundred times. If then an investor had invested $100,000 in Apple’s stock, he would be the owner of $300 million today.
The stock price of America’s giant retailing company Walmart was $ 58.44 in September 2001. The share price is currently $141.67. Microsoft’s stock price in September 2001 was $24.86. The stock is currently priced at $279. The share price of Exxon Mobil was 41.70 in September 2001. Today its price is 87.12. At that time, the stock price of Berkshire Hathaway was $68,000. At present the price of this share is $ 4,84,527. The returns of stocks of companies in developed countries cannot be compared with those of emerging markets like India. This is because the return on equity in emerging countries is much higher than in developed countries.
BSE Sensex also fell 10 percent
The terrorist attack in America on September 11, 2001 had an impact on the stock markets of India as well. On September 12, 2001, the Sensex closed at 3032 points. On 13 September 2001, it fell to 2987 points. On September 14, it closed at 2830 points. On September 17, it had fallen to 2680 points. In this way, from September 12 to September 17, the Sensex had fallen by more than 300 points. It is roughly equivalent to a percentage.
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