The opening of the New York Stock Exchange (NYSE) was delayed after the first plane crashed into the World Trade Center's north tower, and trading for the day canceled after the second plane crashed into the South Tower. NASDAQ also canceled trading. The London Stock Exchange and other stock exchanges were also evacuated. The New York Stock exchanges remained closed until the following Monday. This was the third time in history that the NYSE experienced prolonged closure, and first time since March 1933, though the NYSE also shut down for a few months at the beginning of World War II. Trading on the United States bond market also ceased, with the leading government bond trader, Cantor Fitzgerald based in the World Trade Center. The New York Mercantile Exchange was also closed for a week after the attacks.
The Federal Reserve issued a statement, saying it was "open and operating. The discount window is available to meet liquidity needs.". The Federal Reserve added $100 billion in liquidity per day, during the three days following the attack, to help avert a financial crisis. Federal Reserve Governor Roger W. Ferguson, Jr., the only Governor in Washington, D.C. on the day of the attacks, has described in detail this and the other actions that the Fed undertook to maintain a stable economy and offset potential disruptions arising in the financial system.
Gold prices spiked upwards, from $215.50 to $287 an ounce in London trading. Oil prices also spiked upwards. Gas prices in the United States also briefly shot up, though the spike in prices only lasted about one week.
Currency trading continued, with the United States dollar falling sharply against the Euro, British pound, and Japanese yen. The next day, European stock markets fell sharply, including declines of 4.6% in Spain, 8.5% in Germany, and 5.7% on the London Stock Exchange. Stocks in the Latin American markets also plunged, with a 9.2% drop in Brazil, 5.2% drop in Argentina, and 5.6% decline in Mexico, before trading was halted.
Economic sectors
In international and domestic markets, stocks of companies in some sectors were hit particularly hard. Travel and entertainment stocks fell, while communications, pharmaceutical and military/defense stocks rose. Online travel agencies particularly suffered, as they cater to leisure travel.
Insurance
Insurance losses due to 9/11 were more than one and a half times greater than the what was previously the largest disaster (Hurricane Andrew) in terms of losses. The losses included business interruption ($11.0 billion), property ($9.6 billion), liability ($7.5 billion), workers compensation ($1.8 billion), and others ($2.5 billion). The firms with the largest losses included Berkshire Hathaway, Lloyd's, Swiss Re, and Munich Re, all which are reinsurers, with more than $2 billion each in losses. Shares of major reinsurers, including Swiss Re and Baloise Insurance Group dropped by more than 10%, while shares of Swiss Life dropped 7.8%. Although the insurance industry held reserves that covered the 9/11 attacks, insurance companies were reluctant to continue providing coverage for future terrorist attacks.
Airlines and aviation
Flights were grounded in various places across the United States and Canada that did not necessarily have the operational support in place, such as dedicated ground crews. A large number of transatlantic flights landed in Gander in Newfoundland and in Halifax, Nova Scotia, with the logistics handled by Transport Canada in Operation Yellow Ribbon. To help with immediate needs for victims' families, United Airlines and American Airlines both provided initial payments of $25,000. The airlines were also required to refund ticket purchases for anyone unable to fly.
The 9/11 attacks compounded financial troubles that the airline industry already was experiencing before the attacks. Share prices of airlines and airplane manufacturers plummeted after the attacks. Midway Airlines, already on the brink of bankruptcy, shut down operations almost immediately afterwards.
Tourism
Tourism in New York City plummeted, causing massive losses in a sector which employed 280,000 people and generated $25 billion per year. In the week following the attack, hotel occupancy fell below 40%, and 3,000 employees were laid off. Tourism, hotel occupancy and-in particular-flying also fell drastically across the nation.[citation needed]. The reluctance to fly may have been due to increased fear of a repeat attack. Suzanne Thompson, Professor of Psychology at Pomona College, California conducted interviews of 501 people who were not direct victims of 9/11. From this, she concluded that "Most participants felt more distress (65 percent) and a stronger fear of flying (55 percent) immediately after the event than they did before the attacks."
Security
Since the 9/11 attacks, substantial resources have been put towards improving security, in the areas of homeland security, national defense, and in the private sector it decreased.
New York City
In New York City, there were approximately 430,000 lost job months and $2.8 billion in lost wages, which occurred in the three months following the 9/11 attacks. The economic effects were mainly focused on the city's export economy sectors. The GDP for New York City was estimated to have declined by $27.3 billion, for the last three months of 2001 and all of 2002. The Federal government provided $11.2 billion in immediate assistance to the Government of New York City in September 2001, and $10.5 billion in early 2002 for economic development and infrastructure needs.
The 9/11 attacks also had great impact on small businesses in Lower Manhattan, located near the World Trade Center. Approximately 18,000 small businesses were destroyed or displaced after the attacks. The Small Business Administration provided loans as assistance, while Community Development Block Grants and Economic Injury Disaster Loans were other ways that the Federal Government provided assistance to small business affected by the 9/11 attacks.
Indirect effects
The September 11 attacks also led indirectly to the U.S. wars in Afghanistan and Iraq, as well as additional homeland security spending, totaling at least $5 trillion.
All about September 11 Attacks
September 11 attacks
Aftermath of the September 11 attack
Airport security repercussions due to the September 11 attacks
Al-Qaeda
Able Danger
Aafia Siddiqui
Beliefs of Osama bin Laden
Blowback (intelligence)
Bin Laden family
Bojinka plot
Bosnian mujahideen
Bosnian War
Building what Facts
Building what
Casualties of the September 11 attacks
CIA-Osama bin Laden controversy
Childhood of Osama bin Laden
Closings and cancellations following the September 11 attacks
Compiled Footage of Building
Health effects arising from the September 11 attac
Hijackers in 9 11 attacks
Khalid Sheikh Mohammed
Location of bin Laden
Militant activity bin Laden
Motives for 9 11 attacks
Osama bin Laden
9 11advance-knowledge debate
Planning of the September 11 attacks
Reactions to the September 11 attacks
Responsibility for 9 11 attacks
9 11 pollution controversy
Rescue and recovery 9 11 attacks
Timeline for the day of the September 11 attacks
U.S. military response during the September 11 attacks
1993 WTC bombing
The Federal Reserve issued a statement, saying it was "open and operating. The discount window is available to meet liquidity needs.". The Federal Reserve added $100 billion in liquidity per day, during the three days following the attack, to help avert a financial crisis. Federal Reserve Governor Roger W. Ferguson, Jr., the only Governor in Washington, D.C. on the day of the attacks, has described in detail this and the other actions that the Fed undertook to maintain a stable economy and offset potential disruptions arising in the financial system.
Gold prices spiked upwards, from $215.50 to $287 an ounce in London trading. Oil prices also spiked upwards. Gas prices in the United States also briefly shot up, though the spike in prices only lasted about one week.
Currency trading continued, with the United States dollar falling sharply against the Euro, British pound, and Japanese yen. The next day, European stock markets fell sharply, including declines of 4.6% in Spain, 8.5% in Germany, and 5.7% on the London Stock Exchange. Stocks in the Latin American markets also plunged, with a 9.2% drop in Brazil, 5.2% drop in Argentina, and 5.6% decline in Mexico, before trading was halted.
Economic sectors
In international and domestic markets, stocks of companies in some sectors were hit particularly hard. Travel and entertainment stocks fell, while communications, pharmaceutical and military/defense stocks rose. Online travel agencies particularly suffered, as they cater to leisure travel.
Insurance
Insurance losses due to 9/11 were more than one and a half times greater than the what was previously the largest disaster (Hurricane Andrew) in terms of losses. The losses included business interruption ($11.0 billion), property ($9.6 billion), liability ($7.5 billion), workers compensation ($1.8 billion), and others ($2.5 billion). The firms with the largest losses included Berkshire Hathaway, Lloyd's, Swiss Re, and Munich Re, all which are reinsurers, with more than $2 billion each in losses. Shares of major reinsurers, including Swiss Re and Baloise Insurance Group dropped by more than 10%, while shares of Swiss Life dropped 7.8%. Although the insurance industry held reserves that covered the 9/11 attacks, insurance companies were reluctant to continue providing coverage for future terrorist attacks.
Airlines and aviation
Flights were grounded in various places across the United States and Canada that did not necessarily have the operational support in place, such as dedicated ground crews. A large number of transatlantic flights landed in Gander in Newfoundland and in Halifax, Nova Scotia, with the logistics handled by Transport Canada in Operation Yellow Ribbon. To help with immediate needs for victims' families, United Airlines and American Airlines both provided initial payments of $25,000. The airlines were also required to refund ticket purchases for anyone unable to fly.
The 9/11 attacks compounded financial troubles that the airline industry already was experiencing before the attacks. Share prices of airlines and airplane manufacturers plummeted after the attacks. Midway Airlines, already on the brink of bankruptcy, shut down operations almost immediately afterwards.
Tourism
Tourism in New York City plummeted, causing massive losses in a sector which employed 280,000 people and generated $25 billion per year. In the week following the attack, hotel occupancy fell below 40%, and 3,000 employees were laid off. Tourism, hotel occupancy and-in particular-flying also fell drastically across the nation.[citation needed]. The reluctance to fly may have been due to increased fear of a repeat attack. Suzanne Thompson, Professor of Psychology at Pomona College, California conducted interviews of 501 people who were not direct victims of 9/11. From this, she concluded that "Most participants felt more distress (65 percent) and a stronger fear of flying (55 percent) immediately after the event than they did before the attacks."
Security
Since the 9/11 attacks, substantial resources have been put towards improving security, in the areas of homeland security, national defense, and in the private sector it decreased.
New York City
In New York City, there were approximately 430,000 lost job months and $2.8 billion in lost wages, which occurred in the three months following the 9/11 attacks. The economic effects were mainly focused on the city's export economy sectors. The GDP for New York City was estimated to have declined by $27.3 billion, for the last three months of 2001 and all of 2002. The Federal government provided $11.2 billion in immediate assistance to the Government of New York City in September 2001, and $10.5 billion in early 2002 for economic development and infrastructure needs.
The 9/11 attacks also had great impact on small businesses in Lower Manhattan, located near the World Trade Center. Approximately 18,000 small businesses were destroyed or displaced after the attacks. The Small Business Administration provided loans as assistance, while Community Development Block Grants and Economic Injury Disaster Loans were other ways that the Federal Government provided assistance to small business affected by the 9/11 attacks.
Indirect effects
The September 11 attacks also led indirectly to the U.S. wars in Afghanistan and Iraq, as well as additional homeland security spending, totaling at least $5 trillion.
All about September 11 Attacks
September 11 attacks
Aftermath of the September 11 attack
Airport security repercussions due to the September 11 attacks
Al-Qaeda
Able Danger
Aafia Siddiqui
Beliefs of Osama bin Laden
Blowback (intelligence)
Bin Laden family
Bojinka plot
Bosnian mujahideen
Bosnian War
Building what Facts
Building what
Casualties of the September 11 attacks
CIA-Osama bin Laden controversy
Childhood of Osama bin Laden
Closings and cancellations following the September 11 attacks
Compiled Footage of Building
Health effects arising from the September 11 attac
Hijackers in 9 11 attacks
Khalid Sheikh Mohammed
Location of bin Laden
Militant activity bin Laden
Motives for 9 11 attacks
Osama bin Laden
9 11advance-knowledge debate
Planning of the September 11 attacks
Reactions to the September 11 attacks
Responsibility for 9 11 attacks
9 11 pollution controversy
Rescue and recovery 9 11 attacks
Timeline for the day of the September 11 attacks
U.S. military response during the September 11 attacks
1993 WTC bombing
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