U.S. Stocks Plunge Amid Jobless Claims and Europe's Debt Crisis

The U.S. stock market took a sharp downturn as investors became increasingly concerned about the European debt crisis and rising jobless claims. The S&P 500 Index suffered its largest drop in 13 months, and the Dow Jones Industrial Average lost 3.6 percent. General Electric, Caterpillar, and Exxon Mobil were among the leading decliners. Technical analysts warned that the market had overshot its values and that selling may worsen if the index falls below 1,100.

Key Takeaways:

• The S&P 500 Index dropped 3.9 percent to 1,071.59, its largest decline in 13 months.
• The Dow Jones Industrial Average lost 376.36 points, or 3.6 percent, to 10,068.01.
• General Electric Co. fell 5.8 percent, while Caterpillar Inc. and Exxon Mobil Corp. retreated with oil prices.
• Technical analysts warned that selling may worsen if the index falls below 1,100, a level considered a point of no return.
• Charles Stamey, manager at Manning & Napier Advisors, cited well-known negatives in the U.S. economy and developed markets worldwide, contributing to the decline.
• Mohamed A. El-Erian, CEO of Pacific Investment Management Co., stated that the market is in uncharted waters due to European developments and structural regime changes.

Statistics:

• The S&P 500 Index slid 3.9 percent to 1,071.59 as of 4 p.m. in New York.
• The Dow Jones Industrial Average lost 3.6 percent, with a decline of 376.36 points to 10,068.01.
• The Nasdaq Composite Index declined 4.1 percent to 2,204.01, erasing its gains for 2010.
• The index fell beneath its average for the last 200 days, which it had breached yesterday before paring losses.

Sources:

• Euclid Infotech Pvt. Ltd.
• Syndicate.info
• Albawaba.com