News / Economy

Analysts Give Differing Assessments of Market Plunge

Trader Andrew Stavros reacts after the close of trading in the NASDAQ, 100 Index pit, on the floor of The CME Group Monday, Aug. 8, 2011, in Chicago.
Trader Andrew Stavros reacts after the close of trading in the NASDAQ, 100 Index pit, on the floor of The CME Group Monday, Aug. 8, 2011, in Chicago.
TEXT SIZE - +
Peter Fedynsky

U.S financial markets moved sharply lower Monday, following similar declines throughout the world.  

It’s been a brutal day on U.S. financial markets.  

Financial analyst Muriel Siebert says investors have been focused to television sets, watching market reports. “They want to see how their net worth is doing.  This affects peoples’ retirement accounts, it affects if they had any borrowed money, other accounts," she said.

Millions of investors are seeing their holdings decline.  Wall Street opened down on Monday with all major market indexes - the Dow Jones Industrial Average, S & P 500 and NASDAQ - showing losses of up to five percent by midday.

Many market analysts say the weakness on Wall Street reflects news of America’s lowered credit rating.  But David Resler, chief economist with Nomura Securities, downplays that assessment.  He says investors were aware of U.S. fiscal challenges long before ratings agency Standard and Poors downgraded the U.S. government credit rating. Instead, he attributes the decline to growing investor anxiety over European financial difficulties, particularly those of Greece.

“There’s a worry that contagion from the debt problems facing Greece and to a lesser extent some of the other countries of Europe, will spill over into the larger European economies via the banking system and that the effect on the European system will spill over into the U.S," he said.

As stocks declined Monday, gold rose, selling at more than $1,700 for the first time ever.  Resler explains. “Investors around the world have little confidence in governments of any country in the world right now and are looking for the safest possible asset," he said.

David Resler says the message for investors is volatility. “And it’s the word of the day because we don’t have good clarity about significant challenges that are faced in the financial system generally, but in the European financial system in particular," he said.

Siebert says partisan bickering in the United States contributed to stock market uncertainty. “We have had more partisan hatred in this country than I have ever seen in my lifetime, and I think that has upset people," he said.

Markets around the world also have fallen sharply Monday, with key indexes in Asia and Europe off 2 percent or more.

You May Like

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7225
JPY
USD
102.27
GBP
USD
0.5953
CAD
USD
1.0982
INR
USD
60.349

Rates may not be current.