BOSTON — Fidelity Investments of Boston, one of the nation's largest mutual fund operators, sold off $850 million in stock on Oct. 19, accounting for 4.5% of the New York Stock Exchange's $20.4 billion in sales on Black Monday, the Boston Globe reported Tuesday.
Fidelity, which started selling in London before the opening of U.S. markets, had half a billion dollars of sell orders for the New York Stock Exchange when it opened, the Globe said.
The Dow Jones industrial index fell more than 200 points in the first hour of Black Monday, the nation's worst one-day stock market plummet when corporate America lost about $500 billion. The Dow index fell 508 points--or 22.6%--during that day.
Sources told the newspaper that Fidelity, with about $500 million in sell orders, was among a few major financial institutions whose heavy sales helped prompt the market's devastating plummet. Fidelity vigorously denies the claim, the Globe said.