Stocks Drop Despite Buffett Pledge

    A stock specialist watches prices on the floor of the New York Stock Exchange on August 4, 2011. The Dow Jones Industrial Average plunged 4.3 percent Thursday, its worst one-day drop in more than two years, as global markets melted down over fears of another world economic downturn. The Dow was down 512.76 points to 11,383.68; the broader S&P 500 lost 4.8 percent to 1,200.07, while the tech-heavy Nasdaq Composite plunged 5.1 percent to 2,556.39.    AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images)

    Stan Honda, AFP / Getty Images

    After three days of gains, U.S. stocks closed lower Thursday, despite Warren Buffett's announcement that he would invest $5 billion in Bank of America. The Dow Jones Industrial Average dropped 1.5 percent, or 170.89 points, to 11149.90 and all but two companies on the Dow ended down. Bank of America bucked the trend, rising 9.4 percent after Buffett’s announcement. But the bank has already experienced huge losses this month on worries that the bank will need to raise up to $50 billion of outside capital to combat losses and meet new industry regulations. Shares of Apple eased 0.7 percent after Steve Jobs resigned as CEO Wednesday.

    Read it at The Wall Street Journal