Dow closes below 10,000 thanks to Euro crisis
The Dow Jones Industrial Average closed at 9974.45, the first time since February that it’s been lower than 10,000. As the Wall Street Journal described it, the decline occurred as “investors’ worries about global growth resurfaced, overshadowing strong U.S. data”:
Traders said the market’s late slide was fueled in part by the euro’s decline as investors continue to wait for some sign that policy makers will take steps instead to reign in a potential spread of the euro zone’s debt crisis. The euro tumbled to $1.2193, compared to $1.2334 late Tuesday, in volatile trading dominated by market speculation about the additional fallout from the crisis….
The day’s reversal marked the third day in a row that the market has had a late-day move erasing the performance it had posted through most of the session. Traders say that even during rallies, buyers haven’t necessarily been motivated by strongly held conviction that the global economic rebound will last. As a result, they’ve been prone to take money off the table the first chance they get—an approach that fuels slides like the one Wednesday afternoon.
Republican leaders immediately demanded congressional hearings, investigations and the appointment of a special prosecutor, adding the decline to their growing list of reasons for impeaching President Obama.
OK, just kidding about that last part.
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
217 comments Add your comment
neo-Carlinist
May 27th, 2010
7:36 am
when a media issues a report (and presents it as “news”) about “nervous investors” and the DOW, we must remember there are two types of investors. most individual investors (IRAs, 529s, etc.) used to have faith in the market (in the days before it was a casino). the big guys (who run the market) make money whether the DOW is a 5,000 or 15,000 (it’s called “shorting” and it should be illegal). it’s basically a “sell high – causing a sell off – then buying low. a hedge fund with 2 million shares of ABC Corp. can “earn” 4 or 5 million in a day, and if an individual investor with 100 shares of ABC tries to keep paces, he will see his “earnings” eaten away by capital gains taxes and commissions over time. nice work if you can get it.
Rightwing Troll
May 27th, 2010
7:44 am
3 impeachable offenses?
Taxes that have gone up?
Seepage?
Sextet
May 27th, 2010
7:48 am
Dow below 10K. Everything screams buy everything. Kraft. Intel. Too obvious? Bull Trap? A flash rally to counter the flash crash? Fibonacci symmetry?
After a correction, historically stocks rebound and it’s wise to buy and hold. That’s the problem. If an average person can spot a buy signal, then the buy signal is false.
TaxPayer
May 27th, 2010
7:56 am
I know. Let us follow the herd. They know where to go.
Saul Good
May 27th, 2010
8:07 am
Neo…. let’s not forget about the “News” reports the Bush administration “created”… and the reporters they actually PAID with our tax dollars to sell the Iraq war, build support for it, and the other propaganda they put out to “sell” their agendas… much of it false (yet the talibangelicals and wingnutters bought it all right up):
http://www.globalissues.org/article/532/media-manipulation#WidespreadUseofVideoNewsReleasesByCorporationsandGovernmentAgencies
http://www.globalissues.org/article/532/media-manipulation#GovernmentPropagandathroughPrepackagedNews
md
May 27th, 2010
8:11 am
Seepage? – the failure of certain bodily fluid functions in older humans??
md
May 27th, 2010
8:13 am
“Taxes that have gone up?”
Might not want to mention that one around all the smokers down at the tanning salon – their in a pissy mood.
stands for decibels
May 27th, 2010
8:16 am
If an average person can spot a buy signal, then the buy signal is false.
Pretty much why I’ve almost never bothered to buy individual stocks, and hope and pray the fund managers to whom I’ve essentially entrusted my diversified nest egg aren’t total crooks.
Samantha
May 27th, 2010
8:17 am
The $800 billion or so ( no one seems to know exactly) that Obama borrowed from the Chinese to stimulate the economy is played out. While dumping that much money into the economy has an undeniable stimulative effect, the drug is wearing off. M3, the broad measure of the money supply, is down signficantly, unemployment is still stubbornly high and the economy is slowing down. All crowing aside, the US still has its private sector problems, banks are in deep trouble, residental real estate values are never “coming back” and the government spending on pet democrat government jobs is not helping address fundemental issues. We are spending ourselves into being a third rate country and our democrat policy makers are out of answers and out of ideas.
stands for decibels
May 27th, 2010
8:18 am
Might not want to mention that one around all the smokers down at the tanning salon
I think we should be nice to smokers at the tanning salon; they’re not going to be around much longer, after all.
Normal
May 27th, 2010
8:19 am
Smoked and golden brown…yum.
md
May 27th, 2010
8:23 am
“Pretty much why I’ve almost never bothered to buy individual stocks”
That is why I buy penny stocks when I buy individually – don’t stand to lose much, but if one catches the right one may get huge rewards.
md
May 27th, 2010
8:24 am
“they’re not going to be around much longer, after all.”
May explain the pissy mood.
TaxPayer
May 27th, 2010
8:28 am
Seepage? – the failure of certain bodily fluid functions in older humans??
Depends
TaxPayer
May 27th, 2010
8:28 am
Smoked and golden brown…yum.
Smoked salmon?
Truth Hurts
May 27th, 2010
8:31 am
“and our democrat policy makers are out of answers and out of ideas.”
No they are not. They ALWAYS default to war.
Scout
May 27th, 2010
9:49 am
Rightwing Troll :
I didn’t retract my retraction, I just said I was still doing more research including my review sometime today of the entire handshaking event from the West Point website.
Stay tuned.