Equities Roundup: Wall Street Plummets After Global Markets Sell Off

Equities Editors Desk  |

The Federal Reserve's plan to keep interest rates low with Operation Twist was not enough to satisfy investors around the world as a major sell off pulled stocks lower around the globe. Wall Street is down as much as 4 percent today after falling 2 percent immediately following the Fed's announcement. The bearish turn was sparked mostly by the negative economic outlook and risks the U.S. central bank outlined when it addressed the market. The growing sentiment seems that Operation Twist is actually more about preventing conditions from getting worse and not necessarily having enough of an impact to encourage economic growth. Initial jobless claims fell by 9,000 last week to 423,000 but no new net jobs were created. Compounding the nonexistent growth in the U.S. is the worsening situation in Europe, where the risk of Greece defaulting could lead to a massive contagious downturn in the financial market. Italy, Portugal, Ireland and Spain could all be next in line of the domino effect if Greece does not receive it's next bailout installment. The challenge for the International Monetary Fund and European Central Bank to is quarantine the contagion. Commodities have been absolutely hammered today, with oil down around 7 percent on lowered demand expectations, and gold down about 4 percent as investors are forced to liquidate to cover losses in other assets.

DJIA: 10,696.02 (-3.85 percent)
S&P 500: 1,126.66 (-3.44 percent)
NASDAQ: 2,457.49 (-3.18 percent)
Russell 2000: 645.64 (-2.85 percent)

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