Markets Continue to Face Mayhem

August 22 00:00 2011

New York, August 22 ( – Stock traders often say that the bull comes up the stairs but the bear jumps out of the window! A look at the performance of stocks listed on the NYSE for the past 4 weeks will make this sound true.

Stocks have plummeted at an unprecedented rate in the past month and the index has lost 16% of its value in one month alone. This brings us back to days which look similar to the recession of 2008. While economists would say that US has been out of recession for two years now, the threat of a double dip recession is evident looking at the statistics from the past month.

The two biggest losers in this crisis have been the Technology sector and the Financial sector. Companies like Bank Of America took a major beating first in the wake of a lawsuit filed by AIG and then because of its proposed job cuts. HSBC too faced a similar plight and has given pink slips to many employees. Hewlett Packard too lost value on its announcement to sell of its mini PC business and buy out a UK software maker. Dell too appeared in the red because it revised its revenue forecast to a considerably lower figure.

Meanwhile on the macro-economic level, Morgan Stanley has slashed its expected growth rate of the US economy. Also the blockbuster downgrade of the US Dollar by S&P is at the heart of this crisis which threatens to take the world back to the dark days of 2008.