WHERE IS THE DOW HEADED? By Hope Wilkos, Writer/Blogger
With the level of uncertainty rising regarding the U.S. economy, it’s difficult to determine where U.S. Stocks are headed these days.
Americans are frustrated, President Obama is experiencing the lowest approval rating of his current term at 45% and some believe that the worst is still to come.
Today the Dow Jones Industrial average closed down 519 points. Fears of debt crisis in Europe further fueled the plunge. Yesterday the Stock Market ended on a high with one of its best days yet due to the announcement that the Federal Reserve will keep interest rates ultra-low for 2 more years. In less than 3 weeks, the Dow has lost more than 2,000 points.
Right now the market seems to be on a roller coaster due to economic uncertainty. Europe is also a big market for U.S. Companies. It made up 29% of foreign sales for S&P 500 companies last year. A total of 65 companies have withdrawn initial public offerings (IPO’s) so far this year since stocks have seen a sharp decline.
Two of the largest banks, Citigroup and Bank of America, each lost more than 10% of their market value. Investors are fearful that Italy and Spain will be the next countries to default.
One of the winners in the whole financial situation is gold. Gold rose above $1,800 per ounce as more consumers felt this was a more stable and secure investment.
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