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NewsDow’s biggest single-day plunge in more than two years
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Dow’s biggest single-day plunge in more than two years
by hlk Sat 06 Aug 2011, 13:00
PETALING JAYA: The weight of pessimism came crushing on Wall Street after the drawn-out political brawl over the United States debt ceiling manifested the problems faced by policymakers in a weak US economy.
Fears of a double dip recession resurfaced and Europe's ongoing financial crisis triggered the biggest sell-off in US stocks since the 2008 banking crisis.
The Dow Jones Industrial Average fell by some 513 points or 4.31% to 11,383.68 on Thursday.
It was the biggest single-day fall since Dec 1, 2008 when the Dow plunged 679.95 points.
Cumulatively, the Dow Jones has been down in 10 of the last 11 trading sessions.
Over a 10-day trading period, the Dow Jones has plunged 10.54%, erasing all the gains it made for 2011.
In Asia, the global rout continued, with stocks falling the most since March this year.
Regional markets were a sea of red, with the FBM KLCI falling 22.46 points or 1.45% at yesterday's close on 1.78 billion shares.
In the US, a series of data revealed a increasingly sluggish economy with weakening growth, a stagnating manufacturing sector and poor consumer confidence.
The impact of the eurozone debt crisis was made worse amid data that showed manufacturing expanded at the weakest pace in two years, spending unexpectedly fell and the services industries grew at the slowest pace since February 2010.
It started on Monday, when the ISM manufacturing index fell below expectations and came close to contracting. Monday's ISM manufacturing report, showed the employment component for July slipped to 53.5 from 59.9 in June.
The services sector, which covers about 90% of the American workforce, is growing at the slowest rate in a year-and-a-half. People spent less in June than in May, the first decline since September 2009.
Non-farm payrolls rose by 117,000 in July as private sector employers added 154,000 jobs yesterday, according to the US Labour Department.
The unemployment rate dropped to 9.1% from 9.2% in June. It was better than consensus expectations and took some pressures off the Obama administration to boost the economy.
Fears of a double dip recession resurfaced and Europe's ongoing financial crisis triggered the biggest sell-off in US stocks since the 2008 banking crisis.
The Dow Jones Industrial Average fell by some 513 points or 4.31% to 11,383.68 on Thursday.
It was the biggest single-day fall since Dec 1, 2008 when the Dow plunged 679.95 points.
Cumulatively, the Dow Jones has been down in 10 of the last 11 trading sessions.
Over a 10-day trading period, the Dow Jones has plunged 10.54%, erasing all the gains it made for 2011.
In Asia, the global rout continued, with stocks falling the most since March this year.
Regional markets were a sea of red, with the FBM KLCI falling 22.46 points or 1.45% at yesterday's close on 1.78 billion shares.
In the US, a series of data revealed a increasingly sluggish economy with weakening growth, a stagnating manufacturing sector and poor consumer confidence.
The impact of the eurozone debt crisis was made worse amid data that showed manufacturing expanded at the weakest pace in two years, spending unexpectedly fell and the services industries grew at the slowest pace since February 2010.
It started on Monday, when the ISM manufacturing index fell below expectations and came close to contracting. Monday's ISM manufacturing report, showed the employment component for July slipped to 53.5 from 59.9 in June.
The services sector, which covers about 90% of the American workforce, is growing at the slowest rate in a year-and-a-half. People spent less in June than in May, the first decline since September 2009.
Non-farm payrolls rose by 117,000 in July as private sector employers added 154,000 jobs yesterday, according to the US Labour Department.
The unemployment rate dropped to 9.1% from 9.2% in June. It was better than consensus expectations and took some pressures off the Obama administration to boost the economy.
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