May 7, 2010
Stock Market Crash? May 7 US Stock Market Today Creates Panic
Written under: Finance
The North American stock market took “a crash” nosedive for a few minutes Thursday afternoon, causing traders to dump commodity-related shares in panic as fears about the European debt problems heightens.
The slide was even more pronounced in New York, where The Dow Jones industrials dropped almost 1,000 points before recovering to a loss of 465.
Thursday’s sudden drop was a painful reminder of the volatile market swings during the 2008 Wall Street financial crisis that sparked the recession and was affected by computer programs that intensified the selling pressure.
The skittishness on stock markets underscores a deep-rooted nervousness in the global financial community, which is watching the Greek situation closely.
The big worry is that the Greek government won’t be able to impose austerity measures to get financial help from its peers in the European Union, will default on its loans and touch off a cascade of debt failures in other countries such as Portugal and Spain.
Should that happen, Europe would again be plunged into economic mayhem — once again undercutting demand for oil, metals and all of the other materials that go into manufacturing.
Below is a video explanation on what happened and how will this affect the global markets.
stock market, dow jones, stock market news, stock market crash, cnn