Stock Markets Worldwide Decline On Tuesday- Wall Street Also Retreats
On Tuesday US stock markets declined mainly due to weak global markets, a rising dollar, falling oil and gold prices, and some disappointing profit news from 3M, McDonald’s and Kroger. The Dow Jones industrial average declined by 104 points (1%) to close at 10,285.97 points. Other indices also declined with the S&P 500 index declining by 11 points (1%) to close at 1,091.94 points. The Nasdaq composite declined by 17 points( 0.8%) to close at 2,172.99 points.
Sector wise all sectors registered decline on Tuesday with the energy and materials declining the maximum by 1.7% each. Other sectors which declined include industrials (decline of 1.3%), consumer staples (decline of 1.2%), telecom (decline of 1.0%), financials (decline of 0.9%), consumer discretionary (decline of 0.8%), technology (decline of 0.8%), health care (decline of 0.8%) and utilities (decline of 0.4%).
Stocks declined on Tuesday as investors looked at the falling global markets and a rising dollar. The rising dollar like before pulled the market down. Over the past few months dollar and stock markets are following an inverse relationship with rising dollar pulling the market down and vice versa. On the economy front also there was negative news with reports showing that manufacturing in U.K. and Germany continues to be weak.
Analyst also feel that the market is more or less getting into the end-of-the-year mode and kind of levelling down to levels that are supported by fundamentals. The market since hitting a 12-year low on March 9 has increased by approximately 60% as of Tuesday’s close.
An important news that will influence the market’s future course is the new multi-billion dollar jobs plan and stimulus proposal outlined by president Obama on Tuesday. The president made it clear that the government plans to continue with tax breaks for small businesses, invest in infrastructure profits and give consumers rebates for making their homes more energy efficient. The $200 billion unallocated bailout money would be used to finance this proposal.
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