Which U.S. stock index lost about 777 points on September 29, 2008, then its largest single-day point drop?

The Dow Jones Industrial Average lost about 777 points on September 29, 2008, then its largest single-day point drop.

The fall came after the U.S. House of Representatives rejected the initial version of the Emergency Economic Stabilization Act, commonly associated with the Troubled Asset Relief Program. Investors feared that lawmakers’ failure to approve the plan would worsen the financial crisis.

The Dow’s percentage decline that day was smaller than its 1987 record because the index stood at a much higher numerical level. This distinction is important: point losses and percentage losses measure different things and should not be confused.

The market continued to experience extreme volatility after September 29. The financial crisis involved failing or weakened banks, collapsing housing-related assets, frozen credit markets, and a severe global recession.