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On Wednesday, the US stock market fell amid the Chinese demand weakening, which strengthened worries about the global economic recovery.
The Dow Jones Industrial Average decreased 265.42 points or 2.49% to 10,378.83, posting the biggest one-day drop since June 29. Thus, in this year it was the 11th decline of the index by more than 200 points. In the result of the last drop the DJIA showed the decline of 0.47% compared to the beginning of the year. The Nasdaq Composite was down 68.54 points or 3.01% at 2208.63. Standard & Poor’s 500 edged down 31.59 points or 2.82% to 1089.47.
On Wednesday, Alcoa, Boeing and Caterpillar equities were affected most of all. Shares in Alcoa tumbled 69 cents or 6.1% to at $10.66. Boeing shares became cheaper $3.02 or 4.4% to $65.60, and stocks in Caterpillar decreased by $2.71 or 3.8% to $68.71.
Only several securities ended trades in the positive territory. Shares in Macy’s rose $1.14 or 5.9% to $20.52. The company reported second-quarter profit that exceeded analysts’ estimates and raised its annual earnings forecast.
Other companies’ shares fell as China offered a series of disappointing economic reports about retail sales and industrial output. China is a large source of demand for the American companies, especially in the material sector. In this connection, investors concern about an effect of the Chinese growth slowdown to the US economy, especially after the FRS said on Tuesday that the US recovery is more moderate than-was-expected.
After a strong recovery in the US stock market from March 2009 lows, now investors begin to worry about the second wave of recession.
The strongest fears are about that probably the world recovery will slow down more-than-expected and that the US economy stagnates and goes to zero economic growth again.