Tuesday, August 31, 2010

US stocks fall over growth concerns

US stocks have once again plunged amid new fears of a
double-dip recession

Source: Press TV

US stocks have plunged with a triple-digit point decline as investors lost confidence over figures showing a slowdown in the country's economic recovery.

The Dow Jones Industrial Average dropped 141 points at closing on Monday. The Nasdaq Composite also fell 33.66 points, or 1.56 percent, to 2,119.97. The technology-heavy index has so far dropped 6% this month.

Concerns have also increased as a series of gloomy reports, due to be released later this week, are expected to show that the US economic recovery is slowing down in the second half of the year.

Shares fell further after US President Barack Obama failed to address economic concerns. In a recent speech, he said that he and his economic team had looked at ways to reinforce the economic recovery, including tax cuts for businesses, but did not provide an action plan.

The new discouraging data adds to August losses, with one trading session left in the month.

Last week, US stocks fell sharply as fears grew over the recovery of the world's leading economy, after a report showed a considerable drop in existing homes sales.

The moves came after the US National Association of Realtors reported a 27 percent month-on-month drop in existing homes sales to their lowest level in 15 years in July.

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