As per recent reports, the US stocks tumbled with the beginning of September, where it is considered that it was the S&P 500’s worst September start in 50 years. It is not only S&P which went through a tumble, the other stocks too dropped. Though, the Federal Reserve Chairman Ben Bernanke did try to instill some amount of confidence, it failed to slow down the investor jitters. So, if you are thinking of investing in the stocks in order to pay off your debts, you should think twice.
US stock situation
The reports on the job market show it to be the weakest in a year. This renewed the fears that US may slip back into another phase of recession. The Treasury yields too fell and the price of gold rose as the investors piled onto investments; gold is seen to be less risky investment option in comparison to stocks.
It was seen that the Dow Jones industrial average fell by 172 points, or by 1.5 percent, which is 11,321. The Standard & the Poor’s 500 indexes fell 20 points, or that is by 1.6 percent, to 1,182. The NASDAQ composite index slipped by 39, or it means by 1.6 percent, which is to 2,507.
All of the 30 stocks in Dow fell by quite a few points. Only one of the stocks which is the Verizon Communications Inc. experienced positive advancement. For each of the stocks that experienced a rise, 11 fell against the New York Stock Exchange, where the volume was almost about 1.1 billion.
In fact, after moving to and fro in between the small gains and losses for most of the session, stocks went on the highest downgrade after Bernanke gave his speech at Minneapolis. Majority of the investment stock traders had hoped to get far more insight on the plan of the central bank which is supposed to be brought up mainly in order to provide some support to the economy.
On the other hand, following the sharp decline in the stocks or rather the stock index futures, the stock exchanges with the likes of New York Stock Exchange and NYSE Amex Cash Markets have invoked Rule 48 as for the open, thereby lifting the requirement which may call for price indications that may be of some help for the determination of the floor price in the beginning so as to smoothen away the trade.
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