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Credit market fears continued to haunt Wall Street on Friday as the Dow Jones industrial average plummeted more than 280 points.
The move into the red followed comments by Bear Stearns Cos. chief financial officer Sam Molinaro that the credit market was in the worst state he has seen since 1985.
Molinaro’s warning comes at a time when the dollar is suffering badly because of fears about the subprime lending market, house repossessions are on the up, and the housing market overall in the United States is in an unhealthy states.
Friday’s two percent drop in the Dow Jones comes at the end of a volatile fortnight for the New York market.
In all, the Dow Jones industrial average fell 281.42, or 2.12 percent, to 13,181.91. It is now a long way off of its record breaking level of over 14,000 a couple of weeks ago.
The Standard & Poor’s 500 index dropped 39.39, or 2.68 percent, to 1,432.81, and the Nasdaq composite index fell 64.73, or 2.51 percent, to 2,511.25.
News from the US on Friday that job growth there grew by just 92,000 in July didn’t help matters. This was significantly lower than the 135,000 expected, prompted fears about the health of the economy there.
This brought unemployment in the US in July to 4.6 percent, the highest since January.
18:48
Posted on Aug-05-2007
