Stock Market Futures
August 10, 2011 by staff
Stock Market Futures, Roller coaster ride yesterday in the U.S. stock market can be repeated today. From 8:05 am ET, USA Stock futures fell on all major stock indices. The S & P has dropped 13 points or 1.1 percent and the Nasdaq dropped 29.5 points or 1.4 percent. The Down Jones Industrial Average is down 111 points or 1 percent.
After the closing bell Tuesday, the Dow rose nearly 430 points or 4 percent. The Nasdaq also closed up 125 points or 5.3 of percent and the S & P closed up 53 points or 4.7 percent. Roller coaster ride Tuesday’s stock market was a response to a Federal Reserve report expected was launched at 2:15 pm ET.
Stock futures were higher Tuesday morning, but before 3pm the Dow had lost over 200 points. However, the stock market erased its losses, investors welcomed an announcement from the Federal Reserve Central Bank kept interest rates at or near zero for several more years. “The Committee decided today to keep the target range for the federal funds rate in the 0 to 1 / 4 percent,” said the report by the Federal Reserve.
Unfortunately, the Federal Reserve report brought good news and bad news. According to the Federal Reserve report, the unemployment rate will not improve faster than the Central Bank had expected. “The Committee now expects a slower pace of recovery in the next few quarters than it did at the time of the previous meeting and it is anticipated that the unemployment rate will decrease gradually,” said Federal Reserve report.
Finish strong on Tuesday; the Dow Jones was in marked contrast to the stock index 635 points of free fall on Monday. According to The New York Times, Monday was the worst in the U.S. stock market in a single day performance since December 2008. The S & P also lost 80 points or 6.6 percent. The Nasdaq fell 175 points, or 6.9 percent.
Adding to the nervousness of investors was the announcement last Friday of the Standard & Poor’s financial services company is lowering its credit rating of AAA from AA + U.S. The Standard & Poor announcement comes just after a last minute decision to raise the debt ceiling on 2 August.
Despite the decision by Standard & Poor, Obama remains optimistic. “Markets go up and down, but this is the United States of America. No matter what an agency can say, we have always been and always will be a AAA country,” Obama said from the White House on Monday.
Texas GOP candidate Rep. Ron Paul gave a warning in response to the decision of Standard & Poor to downgrade U.S. credit. “With the growing inflation, rising gasoline and food prices, and a trillion dollar budget deficit all suddenly seem minor problems, if our country does not immediately change our monetary policy and spending,” Paul professes.
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