Markets Plummet as Fukushima Dai-Ichi Nuclear Crisis Deepens

The European Union's energy commissioner, Guenther Oettinger, warned lawmakers in Brussels that the Fukushima Dai-Ichi nuclear power plant was "effectively out of control," sparking a global market panic. The Dow Jones industrial average plummeted 2% as investors scrambled to respond to the escalating crisis. Meanwhile, Republicans on Capitol Hill are pushing to cut Social Security, further exacerbating the financial uncertainty.

Key Takeaways:

• The European Union's energy commissioner, Guenther Oettinger, stated that the Fukushima Dai-Ichi nuclear power plant was "effectively out of control," citing information from the European Union, the International Atomic Energy Agency, and media reports.
• Oettinger's assessment led to a wave of market panic, with the Dow Jones industrial average falling 2% in a single day.
• The broader Standard & Poor's 500-stock index lost 1.95% and the Nasdaq was off 1.89% as investors sold stocks in response to the crisis.
• Republicans on Capitol Hill are pushing to cut Social Security, despite the unfolding economic uncertainty.
• The March 17, 2011, NY Times article reported that the European Union energy commissioner's statement prompted lawmakers in Brussels to raise concerns about the nuclear crisis.
• Brown Brothers Harriman analyst Marc Chandler commented that the market reaction was driven by the assessment that the Fukushima Dai-Ichi nuclear power plant was "out of control."

Statistics:

• Dow Jones industrial average fell 242.12 points, or 2%, on March 16, 2011.
• Standard & Poor's 500-stock index lost 24.99 points, or 1.95%, on March 16, 2011.
• Nasdaq was off 50.51 points, or 1.89%, on March 16, 2011.

Sources:

• Bloomberg News
• CNN
• NY Times (March 17, 2011)
• NPR (March 15, 2011)
• European Union energy commissioner Guenther Oettinger's statement to lawmakers in Brussels.