A significant stock sell-off initiated on Wednesday and stock indices in the
U.S. have struggled since. By mid-day of the last trading session, the Dow Jones
Industrial Average had lost over 400 points. Investor fears were growing on a
global perspective. The primary stock indices in Asia all closed over 2 percent
lower. The primary indices in Europe dropped over 4 percent during their
respective trading session. Reports posted yesterday relaying that the Chinese
and eurozone manufacturing sectors are contracting. This added to the negative
weight felt by the world marketplace yesterday and the pressure carried over
into the U.S. trading session. Adding to the bad news in the U.S. was the weaker
than expected jobs data that posted. According to the Labor Department, the
number of Americans applying for first time unemployment benefits rose higher
and posted at 423,000 for last week. This added to the pressure stock trends
felt during the last session as well. Officially, the Dow Jones Industrial
Average finished off the last session lower by 391.01 points and closed at
10,733.83. The DJIA had lost 500 points at one point during the session. The
Nasdaq finished off the last session lower by 82.52 points and closed out at
2,456. The S&P 500 closed out negative by 37.20 points at 1,129.56. There
appeared to be little safe haven. Even precious metal gold fell lower during the
tidal wave of negativity. The sell-offs started early in yesterdays session and
trends showed no chance of rebound during the day. The activity was an overt
symbol of investor trust. The economy is weak, and investors know it. The
negative action yesterday was this understanding presenting in a more tangible
form. Recession fears are growing. Frank Matto
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