Dow Jones Industrial Average
August 8, 2011 by staff
Dow Jones Industrial Average, The Dow Jones industrial average fell sharply during the first hour of trading Monday as investors reacted to the downgrade of U.S. credit.
Standard and Poor’s decided to cut the credit rating of U.S. AAA to AA + on the weekend, the issues concerning the country’s ability to pay its huge debt arose. Lawmakers have tried to initiate a viable plan to reduce the national debt, which has affected both U.S. and global markets.
Before the Dow Jones industrial average fell 380 points this morning, Asian and European markets had experienced significant losses. The Washington Times reports that these losses are due to “lack of confidence in the U.S. government,” said Nigel Gault, chief U.S. economist IHS Global Insight. “The U.S. political process is currently unable to offer a long term solution to stabilize the debt,” he said.
Global investors fear that the United States, the world’s largest economy could fall into a “double-dip recession,” the Washington Times. As a result, the stock market is experiencing its worst loss in over two years.
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