Stock Market Continues to Drop

by jscreationzs

As we feared, the downward momentum from the end of last week has continued into this week. Today is the third market day in a row the stock market has been in the red. The market has seen huge drops earlier, with the Dow falling about 4%. But as the markets closed, the losses were minimized and current prices of the four major exchanges are reported below. What has made the downfall even worse is the bad news that has come in from Europe. Investors have doubts about the economies of Italy and Greece.

The Dow Jones Industrial Average fell below the 11,000 mark once again, for the first time in the past 2 weeks or so. Currently it is standing at around 11,139 with a drop of more than 100 points or 0.9%. This definitely is a setback from the huge gains we have seen before the market started its downward spiral last Thursday.

The NASDAQ Composite fell about 6.5 points today and stands at 2,473. The S&P 500 has dropped more than 8 points and is standing at 1,165. And the New York Stock Exchange fell more than 102 points or an almost 1.4% drop and is sitting at just over 7,148.

The market week definitely had a bad start and the weather in the North East doesn’t make it seem any better. At least at the end of last week, the blue skies and outside activities gave people a reason to be out and shop, but today, businesses will suffer on both ends, from the stock market and the consumers being held inside due to pouring rain.

The price of Gold hasn’t changed much since I last reported on Friday. The price of gold is currently $1,877.30, just under a $1 less than what it was on Friday. However, at one point today, the price of gold was well over $1,900 nearing its record. It dropped a little because investors found the opportunity to sell near its highest point. But if the economy in Europe, and in the United States, continue to bring bad news, we can see gold prices remain at its current high price or even go higher.

All of this comes after a long Labor Day Weekend. The bad start seems like what we saw at the start of August. But I am not too worried. These things happen and they will continue to happen. As I mentioned plenty of times, the stock market tends to balance itself out after a point. It rallied for almost two weeks and now it is just balancing itself out again. We just have to hope for the balance to increase in its average price and I believe it will happen sooner rather than later.

The bad news about the job data came in on Friday and I believe that the job report for September 2011 will be better. I also don’t think that we will have to wait for October to get some relief from the stock market’s downward spiral, because the market will balance itself out again and rally again even if it’s for a short time.

All we can do now is hope that the future is better for all of our sake. The stock market is volatile now and as always, this could be the perfect time to invest. And as always, be sure to do your own research because the more volatility that exists, the more risk you’re taking with your money.

Nazmus

Loves creating websites and helping others. Some websites include, EasyProgramming.net, Nazmus.com, and Gamers-Forum.com.

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