5:21 am August 9, 2011, by Henry Unger
Will fear be conquered on Wall Street today or will we get more another dose of it?
The Dow Jones industrial average fell 634.76 points Monday, the first trading day since Standard & Poor’s downgraded American debt, Associated Press writes. It was the sixth-worst point decline for the Dow in the last 112 years and the worst drop since December 2008. Every stock in the S&P 500 index declined.
But the S&P downgrade wasn’t the only catalyst Monday, AP writes. Investors worried about the slowing U.S. economy, escalating debt problems threatening Europe and the prospect that fear in the markets would reinforce itself, as it did during the financial crisis in the fall of 2008.
“‘What’s rocking the market is a growth scare,” said Kathleen Gaffney, co-manager of the $20 billion Loomis Sayles bond fund. “The market is under a lot of stress that really has little to do with the downgrade.”
Instead, Gaffney said, investors are focused on worries about another recession and “how Europe and the U.S. are going to work their way out of a high debt burden” if economic growth remains slow, AP writes.
Also in the AJC:
In other words:
- Henry Unger, The Biz Beat
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