Dow Tumbles With Stock Market

The stock market had its biggest fall since 2008, Thursday, with the Dow Jones down 513 points at the closing bell. The 513 points, is the worst one-day loss since December 2008 and ninth worst point loss, as investors worried that the U.S. economy may be slipping back into a recession.

With today’s losses, the market is now in a correction, with the Dow, Standard & Poor’s 500 Index ($INX -4.78%) and the Nasdaq Composite Index ($COMPX -5.08%)all down more than 11% from the closing highs for 2011, reached on April 29. Nearly all of the declines for the indexes has come since July 21; the Dow’s point loss in that time is about 1,340 points.

“We are now in correction mode,” said Sam Stovall, chief investment strategist at Standard & Poor’s. “We could have another couple of weeks to go before it bottoms.” The last time the market was in a correction was last summer, when it fell 16 percent before recovering.

A fear for the markets is that the United States economy may be heading for a double-dip recession. A huge concern was what Friday’s big jobs report will say. In addition, even after a second major rescue package for Greece and the agreement to raise the debt ceiling in the United States, investors are concerned that world leaders have not done enough to address fragile underlying economic growth, while Europe’s debt problems have moved on to the much bigger economies of Italy and Spain.

Stocks in Brazil were down nearly 6%. In Britain, stocks closed down 3.43 percent. In Germany, the DAX index dropped 3.4 percent. In France, the CAC 40 closed down 3.9 percent.

Gold settled down $7.30 to $1,659 an ounce after reaching as high as $1,684.90. Silver was off $2.33 to $39.43 an ounce, a decline of 5.6%. Crude oil was down $5.30, or 5.8%, to $86.63 a barrel, its lowest level since Feb. 18 as the Egyptian revolution neared its climax. It had reached as low as $86.04.

By: Pat Prescott
Published: Aug 4, 2021
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