Dow Drops 512 points- Investors Fear
All stocks are dropping on Wall Street, from technology to oil stocks, investors are taking out their cash and putting it in their mattress. This is a very bad side and shows no confidence in the market as the job report that comes out tomorrow is likely worse than we suspected. The close is in minutes and already the percentage drop is 4.25% and dropping, while the panic is dropping 513 points.
The two areas of fear is Japanese banks dealing with Italy’s debt that may put it into a default situation. Now down to 516 points as indicated this is a global reaction in most markets the Dow is plunging above 500, 503, 504, 505. The whole debt ceiling process sent a message to the rest of the world that the whole process was toxic and has polluted investments.
The stock market is a forward looking indicator of how the economy is doing and thus it is a predictor that not only the US but the world connected global markets are going to do very poorly.
Wall Street in a Quandary -People are Just Throwing Stocks Away