Fresh Eurozone Worries Send Markets Tumbling | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

    Fresh Eurozone Worries Send Markets Tumbling

    The situation in Europe has the markets worried today. At one point, the Dow Jones was down 353 points, while the Standard & Poor's shed 3 percent and the Nasdaq wasn't far behind with a 2.9 percent loss.

    What set the market skidding? The Wall Street Journal pins the blame on three things: Worries of a Greek default, the resignation of a European Central Bank board member and worries about President Obama's just-announced jobs plan.

    The paper reports:

    The increasing possibility of a Greek default sent stocks to fresh session lows. Investors worry that a default is becoming a more likely scenario. The fear of how markets and the global economy would react to such a issues is one of the big issues weighing on investor sentiment.

    "People are definitely spooked because you're never quite sure what the secondary effects are going to be," said Ben Halliburton, chief investment officer at Tradition Capital Management. "It's impossible to say until it actually happens."

    One analyst Bloomberg spoke to concurs:

    "There's that nagging thought that we can continue to have a downward spiral in Europe," James Dunigan, chief investment officer in Philadelphia for PNC Wealth Management, said in a telephone interview. The firm oversees $109 billion. "There's concern of a default, of risk in banks, of a liquidity crisis. In the U.S., even as President Obama made an effort to put that plan together, there's not a whole lot of confidence that Congress will pass."

    The euro also had a tough time today, dropping 3.8 percent against the dollar.

    Update at 4:51 p.m. ET. Stocks Close Lower:

    The Dow, Nasdaq and the S&P closed almost 3 percent down.

    Copyright 2011 National Public Radio. To see more, visit http://www.npr.org/.

    NPR

    Book Review: 'Angels Make Their Hope Here'

    Alan Cheuse reviews Angels Make Their Hope Here, by Breena Clarke.
    NPR

    Fruit Recall Hits Trader Joe's, Costco, Wal-Mart Stores

    The recall applies to "certain lots of whole peaches (white and yellow), nectarines (white and yellow), plums and pluots" from a California packing company, the FDA says.
    NPR

    On Immigration, America's Concerns Are Fiery But Fleeting

    In a recent Gallup poll, most named immigration the biggest problem confronting the nation. But past periods of heightened worries have been brief — and haven't brought about solutions.
    NPR

    9/11 Commission Issues An Update On Anniversary Of Report

    Saying that the world has changed "dramatically," the report's authors write that al-Qaida groups have spread, and the threat for cyberterrorism has grown.

    Leave a Comment

    Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.