THE TELEGRAPH: The US entered bear territory yesterday as investors took fright at a combination of weak domestic retail sales, a declining labour market and fears that faltering global growth will impact on the profits of some of America's largest multi-national companies.
The Dow Jones Industrial Average lost almost 345 points, or 3pc, while the broader S&P 500 index also fell 3pc in its longest stretch of losses since January, as traders and hedge fund managers continued to sell shares in major companies.
The Dow was dragged down by heavy falls in financial companies' shares, including Bank of America, American International Group and Citigroup. Other companies to be hit included Boeing, down 4.6pc, and Caterpillar, down 5.6pc.
Nasdaq, the technology-focused stock market, was also badly hit, falling 3pc, on fears that global technology providers like Cisco, which fell 4.4pc, could be hit by an international slowdown. All three indexes were in bear territory – defined as a 20pc drop from a recent peak.
Fresh economic data added to the gloom, with government numbers showing an unexpected jump in the number of people filing for unemployment benefits, while a report by ADP Employer Services showed private employers cut 33,000 jobs last month. US Stock Markets Dive for Fourth Day on Sales and Job Fears >>> By James Quinn, Wall Street Correspondent | September 4, 2008
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