Stocks which originally were lifted in early trading on government data that indicated that inflation remains in check couldn’t sustain the fears spread across the investors in Wall Street. In mid afternoon trading, the Dow Jones industrial average fell 179.73, or 1.36 percent, to 13,056.80. The Standard & Poor’s 500 index shed 20.13, or 1.39 percent, to 1,432.79, and the Nasdaq composite index fell 29.93, or 1.18 percent, to 2,512.31.
A disappointing outlook from Wal-Mart Stores Inc. created more fears about the pace of consumer spending. Rumor has been spreading about a large money market fund which is struggling because of weeks of volatility. Home Depot Inc., the world’s largest home improvement chain said that weakness in the housing market caused its quarterly profit to slip almost 15 percent. These only add fuels to the burning jungle-fire.
The European Central Bank injected another $10.5 billion into money markets on Tuesday while there was no action by the Fed. Among the hardest hit sectors on Tuesday were financial services stocks, which have been sliding as worries mounted that subprime loan trouble could spread to other parts of the economy.
It appears the sensitivity line is getting thinner as time passed with nervousness spread all over trading areas. So, expect another plunge in the Asia stock markets when the market opens on Wednesday if Wall Street continue to stubbornly maintain at current level.
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August 14th, 2007 by financetwitter
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