Terrible Tuesday for Wall Street - New Year starts with fear as US Economy shows weakness CaymanMama
2008-01-09 16:39:05 (GMT) (Caymanmama.com - Business News)New York City, NY (CM-Press Release Distribution Service) -Stocks tumbled on Tuesday progressing a terrible start to New Year with the growing worries that a recession could be headed in the economy among housing market fallout and the credit. The Russell 2000 (RUT.X) small-cap index fell down by 2.6 percent, the Dow Jones industrial average (INDU) lost 1.9 percent, the NASDAQ (COMPX) composite lost 2.4 percent and the broader S&P 500 (INX) index lost 1.8 percent.
The stocks remained volatile throughout the whole session while in the last hour it turned to be lower with a mix of news that includes AT&T’s word of warning on its consumer industry, report that showed spike in consumer credit and questions concerning Countywide Financial.
Also, the market was at the pity of factors of technical market while the estimations have fallen 10 percent of the highs hit on a closing level in November, the technical definition of a market correction. The investors are seeking to buy stocks at lower levels and within next few days while this could bring in wave of new money or can spark a much higher leg down.
Ryan Atkinson, market analyst at Balestra Capital said, “We’ve gotten very oversold, and we’ve seen this technical correction, so I wouldn’t rule out a short-term rally. But I don’t think we’ve put in a bottom here. We may be at the start of a bear market, which would be typical of a recession.”
Certainly, it has been a fierce start to New Year because others are less inclined in order to call for the recent selloff of making of bears market.
CaymanMama.com - Press Release Distribution Service
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