President George H.W. Bush launched Operation Desert Storm with the most devastating air assault in U.S. history against military targets in Iraq and Kuwait, on January 16th, 1991.

Following months of threats and several UN resolutions, President George H.W. Bush threw down the gauntlet and launched Operation Desert Storm with the most devastating air assault in U.S. history against military targets in Iraq and Kuwait, on January 16th 1991. Prior to the actual strikes, worldwide financial stock markets had suffered from slumping prices… but soon reacted euphorically to the immediate success of the air strikes. The Dow ended the day up 114.60 to close at 2623.51, one of the single biggest percentage gains in its history.

Frantic trading conditions and high volume were also prevalent on other exchange floors. The New York Mercantile Exchange’s oil contract had rallied into the news…but saw its biggest single one day decline as prices dumped as reliable reports recounted the 35 nation Coalition Forces dominance of the Iraqi military and swiftly removed the feared threat of attacks on Saudi Oil fields.

The next few weeks saw high volume days with stocks and oil prices rocketing back and forth, reacting to actual news and rumors of SCUD missile attacks on Israel and Saudi Arabia, and the ground force assault. Bush officially declared a cease-fire was on February 27, 1991.

This Week in Wall Street History

1/14/08