Published on Sat, Oct 31, 2009 at 08:34 | Source : CNBC-TV18
Updated at Sat, Oct 31, 2009 at 14:21
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US markets tumble; Dow down 250 points
The US markets tumbled on Friday on the back of disappointing consumer data and dollar strength. The US market has given back all of the gains from the prior session.
The US markets tumbled on Friday on the back of disappointing consumer data and dollar strength. The US market has given back all of the gains from the prior session.
The Dow slipped 2.5% or 249.85 points at 9712.73 and the Nasdaq dropped 2.5% or 52.44 points at 2045.11, while the S&P 500 lost nearly 3%. It was the Dow's worst one-day percentage loss since July.
For the week, the Dow gave up more than 2%, the Nasdaq ended down 5% while the S&P 500 lost 4%. However, for the month the Dow finished flat. The S&P 500 and Nasdaq finished October in the red; they were down 3.64% and 2% respectively, snapping seven straight months of gains.
Consumer sentiment slipped to 70.6 in a final October reading from 73.5 in September.
In another report, the government said consumer spending fell 0.5% last month while income was flat.
The dollar recovered after steep losses in the previous session. But the dollar fell against the yen after the Bank of Japan said it would stop buying Japanese corporate bonds and commercial paper, starting a withdrawal process from the credit market.
The dollar index rose to above 76 and was up more than 1% on the week, its best weekly gain since June.
Crude fell the most in a month. It slipped nearly 4% to below USD 77 after poor consumer data in the US.
