NEW YORK - Wall Street has once again fallen under the dive of financial values and automobiles, the latter having been sealed by the difficulties experienced by the Senate to find a compromise to help the sector. The Federal Reserve has made its key to the depression that prevailed in the market, drastically reducing its growth forecasts for 2009 and saying, in the minutes of its last monetary policy meeting, that further rate cuts of interest were not excluded in the event of further deterioration of the economy. "The Fed has confirmed what the market had already begun to implement - the recession is here and there," said Bruce Zaro, strategist at Delta Global Advisors. The Dow Jones 30 industrial plunged 5.07% or 427.47 points to 7997.28, closing for the first time below 8000 points since March 2003. The S & P-500, broader, lost 52.54 points, or 6.12%, to 806.58. The Nasdaq Composite fell on its side of 96.85 points (-6.53%) to 1386.42. The General Motors ended down 9.71% to 2.79 dollars after falling in plenary to a low of 66 years of 2.52 dollars, investors fear that elected officials do not agree on a assistance to the automotive industry before the end of the current session of Congress. Ford has also lost a quarter of its market capitalization in one session (-25.0% to 1.26 dollar). The Financial compartment was the other main victim of the day, the sectoral index S & P falling by 11.53%, experts worried about the effects of the contraction of economic activity on the banks. Citigroup has plunged 23.44% to 6.40 dollars, JP Morgan Chase lost 11.42% to 28.47 dollars and Bank of America 14.02% to 13.06 dollars. On the Nasdaq, the Yahoo has lost 20.87% to 9.14 dollars after Microsoft has ruled out any acquisition of Internet portal. Leah Schnurr, French Benoit Van Overstraeten |
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