Markets plummet in panic
4 Aug, 2011 17:18
Things are not very good. U.S. Stocks Plunge in Biggest Retreat Since 2009 despite the debt deal signed into action earlier this week.
By the end of the day the Dow Jones Industrial Average showed a drop of more than 500 points and similar losses were apparent on the S&P 500, Nasdaq Composite and Fox 50. The Dow has been dropping for over a week now, showing the lowest numbers since the recession.After the United States managed to show signs of recovery after the recession that subsided in 2009, everything that was gained in the markets since things picked back up have now been lost in only a few short days.As doubt over the future of the US dollar goes up, so do prices of gold. Coming off of record high prices, the precious metal surged on Wall Street by 0.9 percent once again. Gap Inc., the largest American chain of clothing outlets saw a slump of 8.4 percent, and the largest satellite-TV provider, DirecTV, dropped nearly 9 percent. Worldwide, similar trends are popping up. Markets showed drops in Britain and Germany today, and the debt crisis that has been plaguing other European nations are now expanding into larger locales. The European Central Bank has responded by buying bonds in hopes of calming a debt crisis from escalating in Italy, following the turbulence that has plagued Greece for months now.The Labor Department is expected to release July’s workforce statistics later this week, and though 57,000 new jobs are believed to have been added, the tally of unemployed should still remain at around 9.2 percent. The Institute for Supply Management released a report earlier this week that manufacturing, both domestically and abroad, was barely increasing at all.