Dow in bear territory

Dow in bear territory

 

NEW YORK – THE Dow Jones Industrial Average on Wednesday entered a bear market for the first time since 2002, with United States companies poised for the worst profit slump in six years.

The index slipped to 11,215.51 points on Wednesday from a high of 14,164.53 on Oct 9, causing firms to shed a collective US$1.1 trillion (S$1.5 trillion) in value.

 

The Dow became the second major US index to enter a bear market, crossing the critical threshold of a 20 per cent decline from its peak; the Nasdaq crossed that line in February.

 

‘I think we’re seeing a capitulation of sorts and a sign that the market is really on its knees,’ said Mr Marc Pado, the chief equity market strategist at Cantor Fitzgerald.

 

However, the Dow recovered slightly, up 1 per cent to 11,326.40 after two hours of trading yesterday. Investors snapped up shares of energy companies after oil prices hit a record US$145.85 a barrel.

 

REUTERS

 

Source: Straits Times

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