Stock Plunge On Renewed "Double Dip" Fears
Tweet
Share
E-mail
Get Alerts SPY Hot Sheet
Join SI Premium – FREE
Stocks were under heavy pressure today, erasing all their year's gains, as fears of a 'double dip' recession again entered the market following yesterday's move by the Federal Reserve to take additional quantitative easing measures due to a ratcheted-down outlook for the economy.
The Dow closed down 265 points, or 2.5 percent, to 10,379. The Nasdaq fell 69 points and the S&P 500 fell 32 points.
While promising to keep the federal funds rate "exceptionally low" for an "extended period," the Fed indicated they would be reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The Fed's balance sheet will remain around $2.054 trillion.
The Fed's move pushed two-year Treasury yield as low as 0.4892 percent.
The U.S. dollar fell to a 15-year low versus the Japanese Yen.
After rallying yesterday's on the news, Gold fell below the $1200-level. Last trading at $1199.60.
In addition to the Fed news, today data showed that the trade deficit widened by a much higher-than-expected margin in June due to a jump in consumer goods coming from China and other suppliers, marking a sign that the economic growth in the second quarter may have been weaker than previously thought. The Commerce Department reported Wednesday that the monthly trade gap widened by 18.8 percent to $49.9 billion, the highest mark seen since October 2008.
Related ETFs: (NYSE: SPY), (NYSE: GLD), (NYSE: IEF), (NYSE: TLT)
The Dow closed down 265 points, or 2.5 percent, to 10,379. The Nasdaq fell 69 points and the S&P 500 fell 32 points.
While promising to keep the federal funds rate "exceptionally low" for an "extended period," the Fed indicated they would be reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The Fed's balance sheet will remain around $2.054 trillion.
The Fed's move pushed two-year Treasury yield as low as 0.4892 percent.
The U.S. dollar fell to a 15-year low versus the Japanese Yen.
After rallying yesterday's on the news, Gold fell below the $1200-level. Last trading at $1199.60.
In addition to the Fed news, today data showed that the trade deficit widened by a much higher-than-expected margin in June due to a jump in consumer goods coming from China and other suppliers, marking a sign that the economic growth in the second quarter may have been weaker than previously thought. The Commerce Department reported Wednesday that the monthly trade gap widened by 18.8 percent to $49.9 billion, the highest mark seen since October 2008.
Related ETFs: (NYSE: SPY), (NYSE: GLD), (NYSE: IEF), (NYSE: TLT)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fabric.AI stockholders approve Kopin partnership for MicroLED interconnect
- Wave Life Sciences starts Phase 2a obesity trial for WVE-007 drug
- AMC Robotics leases Vietnam facility for NovaArm production
Create E-mail Alert Related Categories
Market CheckRelated Entities
Standard & Poor'sSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
