Wall Street opens for trading tomorrow after a depressing week of losses that pushed the Dow Jones industrial average to its worst June since the Great Depression. The blue-chip index is at its lowest point since September 2006.
Investors are again contending with a relentless stream of troubling news from record oil prices to renewed concerns over the health of the financial sector.
“I think the market is trying to make a bottom, but the question is: Will it hold there or just crash through?” said Alexander Paris, an economist and market analyst for Barrington Research. “It feels just like the top of the technology bubble in 2000 – you know there’s something wrong, but it is hard to time it.”
The Dow closed Friday at 11,346.51, a loss of 4.2 percent for the week. The Nasdaq composite index finished at 2,315.63, down 3.8 percent. The S&P 500 index ended the week at 1,278.38, a drop of 3.0 percent.
Friday’s 107-point decline in the Dow left the index down 10.2 percent in June and on the brink of a bear market. The Dow has plunged 19.9 percent since setting an all-time high in October. Market experts define a bear market as a drop of at least 20 percent from a recent high.
“We are already in a bear market,” said Peter Kenny, managing director at Knight Equity Markets. “Even the good ships get stranded on the beach when the tide goes out.”
Filed under: Tennessee | Tagged: bear market, black monday, depression, inflation, lost savings, middle class wiped out, recession, record oil profits, stock market crash, stocks plummet, US currency debased, worst June since geratt depression |