United States stocks went down for the third week in a row, with the largest one day drop since 2008, as many investors felt high level of anxiety over the country’s downgrade and Europe’s debt crisis.
The S&P 500 pared its decline in the latter half of the week as figures from the government indicated that there was a reduction in unemployment claims and retail sales numbers went up. Bank of America Corp went down by 12%, which is the biggest loser in the Dow Jones Industrial Average. Walt Disney Co was down by 5.9% following a report showing that the company had a low studio revenue for the quarter. DeVry Inc was down by 23% which is the biggest loss in the S&P 500 following an announcement that the new undergraduate enrollment was lower than expected.
The S&P 500 declined by 1.7% to 1,178.81 in the last five days which is the conclusion for the week that had records going up and down. The Dow fell 175.59 points or 1.5% to 11,269.02. Both indices were down for three consecutive weeks.
According to Leo Grohowski from BNY Mellon Wealth Management in Boston, “Investors are going to have to get accustomed to above- normal volatility. Economic uncertainty is going to continue to outweigh the good news from company fundamentals. We’re all hostage to the news flow out.”
The record swings that the US stock market has experienced this week has been unexpected, to say the least.
Tags: DeVry Inc, new undergraduate enrollment, Walt Disney Co, good news, normal volatility, America Corp
