Wall Street Woes Continue As Dow Closes Down 519 Points


stocks-sad-upsetIt was yet another rough day on Wall Street today, a day after the Dow Jones Industrial Average posted its biggest gain since early 2009.

The Dow took a nosedive late in the trading day to close down 519 points (4.6 percent), erasing Tuesday’s 429 point gain.

The Nasdaq lost 101 points to close at 2,381.05 and the S&P 500 51 points to finish at 1,120.76.

Meanwhile, gold continued to shoot up and closed up 2.9 percent. Gold finished the day at $1,785.50 an ounce.

The average plummeted more than 300 points within minutes of the opening bell and was down as many as 468 points by late morning.

Tuesday’s positive day was what people were looking for after Monday’s plummet of 634 points. Monday was the first trading day since Standard & Poor’s downgraded the U.S. one notch from its top AAA credit rating to AA+. Last week, worries about the slowing economy and Europe’s debt troubles also knocked down stocks.

“Investors are still trying to discern whether it’s going to be a double-dip recession or just a slowdown,” said Oliver Pursche, president of Gary Goldberg Financial Services.

There are still significant challenges ahead for countries around the globe.

Besides weak U.S. economic growth, investors are worried about Europe’s debt troubles and rising inflation in China and slower growth in other less-developed countries.

Pursche is optimistic that global growth will improve, but he still expects markets to remain volatile until “there’s a recognition that the probability of a broad-based global second round of recession is very unlikely.”

The overall S&P 500 index fell 46, or 3.8 percent, to 1,126. The Nasdaq composite index fell 86 points.

On Tuesday, the Dow’s point gain was its tenth-best in history. The Dow swung 600 points, from a 205 point decline to the 429 point gain in the hour or so after the Fed said it considered “policy tools” to help the economy.

But the Central Bank also gave a dim outlook on the economy’s strength in its Tuesday statement. It said growth this year has been “considerably slower” than it expected and that it anticipates a slower pace of recovery over coming quarters.

As recently as June, the Fed said that the slowing recovery was due to temporary factors, such as high gasoline prices and the disruption to manufacturers following Japan’s March earthquake. But on Tuesday, the central bank acknowledged those factors were only part of the reason that the economy grew at its slowest pace in the first half of this year since the recession ended in June 2009.

The statement “was essentially a full admission that the Fed had not fully gotten their arms around the permanence to the weak trends in the economy,” William O’Donnell, head of U.S. Treasury strategy at RBS Securities, wrote in a report.

Economists have become more pessimistic about the U.S. recovery in the last month. The manufacturing and services industries barely grew in July. Consumers cut their spending in June for the first time in nearly two years. Job growth was better than economists expected in July, but the 117,000 jobs created were not nearly enough to pull the unemployment rate below 9 percent.

{CBS New York/Matzav.com Newscenter}


  1. the economy will continue going down no matter what they do. ITS IN THE HANDS OF HASHEM.

    this is the wake-up message from Hashem that its time for ALL YIDDEN to start moving to Eretz yisroel & making aliya. Hence showing Hashem that now-after tisha b’av-we are not just in mourning for the bais Hamikdosh-we are yearning for it also & showing Hashem by making aliyah to Eretz Yisroel.

    Hence we have 2 choices left from Hashem 1)we can make aliya out of our LOVE FOR HASHEM or 2)we can be forced by Hashem to leave this medina shel chesed-that is now ruled by bnei yishmael i.e. moslem & the last ones to rule us before mashiach comes-& have nowhere else to go but Eretz Yisroel C”V