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Banking industry

Stocks Plunge as Europe's Debt Crisis Deepens

Strategic Insights

— 1 min read

U.S. stocks closed lower on Thursday, mirroring declines in European markets, as investors remained cautious about the future of the continent's economy. The Dow Jones industrial average fell 86 points, or 0.8%, while the S&P 500 and Nasdaq composite lost 9 points, or 0.7%, and 35 points, or 1.4%, respectively. The market was also reacting to mixed earnings reports from major corporations, including Microsoft, Hewlett-Packard, and Intel.

Key Takeaways:

  • The Dow Jones industrial average fell 86 points, or 0.8%, on Thursday, with Microsoft, Hewlett-Packard, and Intel among the biggest decliners.
  • Shares of major financial institutions, including Citigroup, Bank of America, JPMorgan Chase, and Goldman Sachs, fell between 1% and 3% as investors remained cautious about the European debt crisis.
  • The Greek parliament is expected to vote on more austerity cuts on Thursday, while European leaders are scheduled to meet on the weekend to discuss a plan to resolve the debt crisis.
  • U.S. stocks closed lower on Wednesday, with the Federal Reserve's Beige Book report painting a picture of an economy losing steam.
  • New claims for unemployment benefits remained above the key 400,000 threshold, while existing home sales fell to an annual rate of 4.91 million in September.
  • The Philadelphia Fed index showed an improvement in manufacturing activity in the mid-Atlantic area, while the index of leading economic indicators rose 0.2% in September.

Statistics:

  • Dow Jones industrial average fell 86 points, or 0.8%, on Thursday.
  • S&P 500 lost 9 points, or 0.7%, on Thursday.
  • Nasdaq composite dropped 35 points, or 1.4%, on Thursday.
  • New claims for unemployment benefits remained above 400,000 in the latest week.
  • Existing home sales fell to an annual rate of 4.91 million in September.
  • Philadelphia Fed index showed an improvement in manufacturing activity in the mid-Atlantic area.
  • Index of leading economic indicators rose 0.2% in September.

Sources:

  • CNNMoney (New York)
  • Dow Jones & Company (New York)
  • S&P 500 Index
  • Nasdaq Composite Index
  • Federal Reserve's Beige Book report
  • National Association of Realtors
  • Conference Board

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