Market closing could presage fall, then rise
By Janice Chamberlain -- Furniture Today, September 16, 2001
HIGH POINT — HIGH POINT — Stock markets in New York did not open for trading on Tuesday in the wake of the terrorist attacks in New York and Washington.
At press time last week, New York markets had not reopened. The Toronto Stock Exchange did reopen on Thursday, but U.S. stocks were not traded.
This week's stocks page, at right, is based on just two days of trading — Friday, Sept. 7 and Monday, Sept. 10 — instead of the usual five days. Normal coverage of furniture stocks should resume in the Sept. 24 issue.
The shutdown caused by last week's attacks was not the first time U.S. stock markets closed as a result of national events. But it was the longest since the four-and-a-half month hiatus following the outbreak of World War I.
In celebration of V-J Day at the end of World War II, the New York Stock Exchange closed Aug. 15-16, 1945, and also closed for a day and a half in November 1963 following the assassination of President John F. Kennedy.
Opinions vary widely as to whether or not the attacks, coupled with the exchange closings, presage a drop in market indices. Stock market declines are common following significant national events, but may also signal an ultimate surge in the markets.
During the Cuban missile crisis of 1962, the markets remained open after President Kennedy announced the presence of Soviet nuclear missiles in Cuba on Oct. 22. Markets dipped and continued in an up-and-down pattern. On Sunday, Oct. 28, Soviet Premier Nikita Khrushchev backed down, agreeing to remove the missiles.
On Monday, Oct. 29, the markets were higher than they had been before the crisis and continued to gain ground, eventually establishing a new high.
After closing due to the Kennedy assassination, the markets also went on to post new highs.
On Aug. 2, 1990, the Iraqi army invaded Kuwait. Markets plummeted and continued to fall until U.S. and allied troops began the air war on Jan. 17, 1991.
The Gulf War ended with the Iraqis withdrawing from Kuwait. Once again, the stock markets rose to a new high.
As of Monday, Sept. 10, the Furniture/Today Stocks Index was up 18.8% over last year's prices, having made steady progress from 329.05 points to the current 391.01 points.
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