Posts Tagged ‘new credit crisis’
Causes Of U.S. Stocks Tumbled
U.S. stocks on Wall Street fell nine percent in the last two hours of trading Thursday (05/06/2010) local time, before returning back some losses because of the crisis increased the debt crisis in Europe prompted fears of new credit crisis.
Dow’s biggest point decline ever recorded in the daily trading (intraday), which may be caused by any trade that is entered by someone at a big Wall Street banks, some market sources said.
Index restore some of their losses toward the close of the equity but have removed most of their profits for this year to end down just three percent, the biggest decline since April 2009.
“We do not know what stocks are worth today, and it is a serious problem,” said Joe Saluzzi of Themis Trading in New Jersey.
Traders in the whole world was shaken and told to start trading in the middle of decline as investors tried to reduce losses in markets that were hit by indiscriminate selling fast.
Total shares fell in New York Stock Exchange exceeds the number of shares rose more than 17 to one. Volume soared to its highest level so far this year.
Nasdaq said the are investigating the possibility of any transaction involving multiple securities held between 2:40 and 3:00 o’clock in the afternoon.
Investors have been on edge all day trading after European Central Bank did not discuss the direct purchase of debt of European countries because some hope they can calm the markets, but gave verbal support, not for the savings plan of Greece, disappointing investors.
The Dow Jones Industrial Average fell 347.80 points, or 3.20 percent, to 10520.32. Index Standard & Poor’s 500 fell 37.75 points, or 3.24 percent, to 1128.15. The Nasdaq Composite Index lost 82.65 points, or 3.44 percent, to 2319.64.
Action sell wide and deep with all 10 sectors of the S & P 500 fell two to four percent. The financial sector was the worst with a decline of 4.1 percent.
Indiscriminate selling hitting some big berkapitalisasi stock. Bank of America suffered the largest percentage decline in the Dow, falling 7.1 percent to 16.28 U.S. dollars. All components of the Dow which consists of 30 listed companies closed lower.
An index known as Wall Street’s fear gauge, CBOE Volatility index closed up more than 30 percent in the highest closing price since May 2009. The index earlier rose as much as 50 percent.
Mounting fears about the debt crisis spread across Europe restrain appetite for risk and place a report of weak U.S. retail sales help to decrease more sharply. The most prominent retail chain reported worse-than-expected sales for April, triggering fears about consumer spending, the main engine of the U.S. economy.
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