Stocks Plunge On Global Economic Concerns [AUDIO]
Stock markets saw their worst declines of 2012 Tuesday around Global economic fears.
The Dow lost 204 points. The NASDAQ was down 40 and the S and P dropped 21. The only member of the Dow club finishing higher Tuesday was Intel, it managed a gain of 7 cents.
The sell-off centered around concerns for Greece, which faces a Thursday deadline to get private investors to agree to terms of its bailout. And the Euro news…which also saw European stock markets drop, followed China’s pronouncement Monday of slower projected economic growth this year.
Chris Cordaro of Regent Atlantc Capital in Morristown says, “we live in a Global economy, so, if any part of the world economy slows down, it affects everyone else.”
There are also some underlying fears markets have been somewhat overheated since the start of this year.
Last year, sell-offs like this were much more common. The S and P fell by at least 1 percent on 48 trading days, roughly one in every five. During the depths of the financial crisis in the last four months of 2008, it happened roughly one in every three days.
Yields on U.S. government debt also fell as investors moved their money into what they perceive to be a safer asset. The yield on the benchmark 10-year Treasury note fell to 1.96 percent from 2.01 percent late Monday. Bond yields fall when their prices rise.