Wall Street stocks dropped, Worst Since 2008
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Fear of a repeat of the recession in 2008 monetary crisis in the United States led to the decline of stock prices on Wall Street on Thursday. Dow Jones stock index reportedly fell to 512 points. This is the worst fall for the Dow since late 2008.
According to the Associated Press, this situation makes the Dow Jones and other stock indexes slid 10 percent of their highest values in spring. "We continually bombarded by worries of global economic crisis," said Bill Stone, chief investment strategy for PNC Financial.
In the past two weeks, the Dow Jones has lost over 1,300 points, or 10.5 percent. At the closing of the transaction last Thursday, the Dow Jones closed down 512.76 points at 11,383,68. The market value of Dow Jones also fell by U.S. $ 1.9 trillion. This is the worst decline since December 1, 2008.
Dow Jones points decline as much as 4.3 percent on Thursday was the ninth worst ever recorded. The first worst incident occurred on Black Monday in 1987 with a decline in the Dow Jones up to 22 percent.
In the blue chip index, shares slumped the most are Alcoa, Caterpillar and Bank of America. S & P 500 stocks fell sharply by 60 points or 4.8 percent. Nasdaq stock index fell 136 points, or 5.1 percent. Shares of Apple, Google and Netflix does not drop too much, only between 2-3 percent.
This decrease followed the weakening U.S. economy plus the decline of the economy in several European countries. Newest, Italy and Spain are likely need emergency assistance of the European Union.
Due to the decline on Wall Street, stock markets in Asia are also affected. CNN reported, Friday, August 5, 2011, Asian stock markets declined sharply. Australia All Ordinaries stocks fell by 4.3 percent, Japan's Nikkei fell 3.5 percent and South Korea's Kospi slumped 3.6 percent.
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Posted by Anggo82
on Friday, August 05, 2011. Filed under