For Discussion: Wall Street Set To Plunge…Should We Be Worried??

- By Bossip Staff

Wall Street is set to plunge at Monday’s open after rating agency Standard & Poor’s cut the top-tier AAA credit rating of the United States, rattling already jittery investors. The agency’s move came late Friday after a wild week for U.S. stocks — the worst in more than two years — as lingering concerns about sluggish economic growth and heavy public debt loads in developed economies dented investor sentiment.

U.S. stock index futures point to a decline of over 200 points on the Dow Jones industrial average at the start of trading Monday. Earlier, global stock markets sank again as worries about the downgrade of U.S. debt outweighed relief at a European Central Bank pledge to buy up Italian and Spanish bonds to help the two countries avoid devastating defaults.

European markets lost early momentum and most were trading sharply lower amid mounting fears over the opening of U.S. markets, when traders will have their first chance to respond to the U.S. debt downgrade.

Among the major markets, Japan’s Nikkei 225 stock average closed down 2.2 percent at 9,097.56, while Hong Kong’s Hang Seng fell the same rate to 20,490.50. South Korea’s Kospi ended 3.8 percent lower as did China’s main exchange in Shanghai.
MSCI’s broadest index of Asia Pacific shares outside Japan fell 4.2 percent, taking its losses for the month so far to more than 12 percent.

“It’s not Armageddon, but it feels like it,” said Hong Kong-based analyst Francis Lun, adding that he foresees the territory’s Hang Seng index to sink below 19,000 — a decline of a further 5 percent — before making any kind of comeback. Legendary investor Warren Buffett told CNBC Monday that there’s no question that the U.S. debt is still AAA and that he is not changing his mind about Treasurys based on S&P’s downgrade.
The dollar was lower against the yen and the euro. The U.S. dollar also hit a record low against the Swiss franc of 0.7485 centimes to the dollar — a drop of almost 30 percent from a year ago.
The price of oil pushed past $1,700 an ounce for the first time as investors sought shelter in assets traditionally viewed as safe havens in times of financial turmoil.

Discuss…

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Comments

  • Steph

    Prez Obama cannot catch a f.n. break!!!!

  • gina

    Ok….but all you other shittz talking back stabbing MOFOS please know that YOUR COUNTRIES we will be taking your azz down with us 🙂 As country we wont starve! Hey Bank of American your slick azz is going wish you had made “HOME AFFORDABLE” like President Obama told you and modified those home loans instead of loaning money to your friends to build off shore luxury hotels, stupid arenas, etc.

    BRING HOME OUR TROOPS. CLOSE THE BORDERS AND LET’S COWBOY UP FOR THE WINTER….OUR OIL RESERVES AND GRAIN BINS ARE FULL!

  • team nymphis

    people need to start livin beneath their means.it’s about to get real ruff out here.my business provides me the opportunity to deal wit big banks as well as business owners daily.and the forecast is not sunny.if you have money put it away.keep track of your daily purchases so you can better determine what you need as oppose to what you want.our dollar is losing value constantly.I remember when I first started coin to carabana in Toronto.our dollar use to be king up there,now it’s just some more paper to recycle.

  • DatD00d

    Big error at end of article. Oil is priced in dollars per 42 US gallons barrels not ounces. Gold reached nearly $1700 per US ounce

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