Wall Street Drop
August 8, 2011 by USA Post
Wall Street Drop, U.S. stocks tumbled Monday, tracking a sharp fall in global stock markets after ratings agency Standard & Poor’s cut the rating class AAA credit of the United States, shaking the already jittery investors.
The Nasdaq fell more technology than 3 percent at the opening. Market sectors most sensitive to the economy such as banking and natural resources, bore the brunt of the sale. United States Steel Corp (XN) fell 6.2 percent to 31.18 and, while Citigroup Inc (CN) fell 5 percent to 31.83 y.
S & P downgraded the U.S. long-term rating by one notch to AA-plus Friday night because of concerns about the debt of the world’s largest economy. The downgrade could raise borrowing costs for the U.S. government, businesses and consumers. [ID: nLDE77500Z]
The decision came after a wild week on Wall Street – its worst in over two years – as persistent concerns about slow economic growth and fears of financial collapse in the eurozone hit sentiment.
Dramatic intervention, including the European Central Bank in bond markets, pushing bond yields Spanish and Italian, was not enough to stop the sale. [ID: nLDE7770NM]
“What we are about us and the subsequent conclusion of the purchase of what we believe is the value that the ferocity of the time the low is still very strong,” said Paul Zemsky, head of asset allocation at ING in New York
The Dow Jones Financial / markets / index? Symbol =% 21dji us “>. DJI fell 215.55 points, or 1.88, to 11,229.06. 500 The Standard & Poor Index. SPX fell 27.71 points, or 2.31, to 1171.67. The index Nasdaq Composite. IXIC lost 58.30 points, or 2.30 percent, to 2474.11.
The New York Stock Exchange invoked a special rule known as Rule 48, to smooth trade in the open market.
MSCI All countries share the world. MIWD00000PUS fell 2.5 percent and hit its lowest level since September 2010.
Refuge of assets were in demand. Gold XAU = vault above and 1,700 an ounce for the first time on Monday and reached a record 1715.01 y.
Sharp drop last week in the deletion and 2.5 billion global market valuations. The S & P 500 has fallen more than 12 percent since late April, with much of that comes in large volume sales last week. Before Monday, the index had fallen by 11 percent in the last 11 sessions.
Analysts said the S & P 500 could prove intraday low of 1168.09 on Friday. Some operators are seeking a setback for the decline of 32.8 percent of the rally low rate of bear market in March 2009. That level is about 1100.
Zemsky ING, said he was seeking support in 1130, the level of a rupture of the bag in September 2010, but warned that fast-moving markets quickly may fall through support points.
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