US markets endured another day of decline with investors concerned that corporate profits are not...
US markets endured another day of decline with investors concerned that corporate profits are not going to rebound in the near future. The Fed's rate cut yesterday seems to have made little impact in Wall Street's pessimism. The Dow Jones ebbed to its lowest level in two years.
On the upside, the S&P 500 and the Nasdaq at least flickered between gains and losses, suggesting some investors think that declines have peaked and value is creeping back into the market.
The Dow Jones fell 233.76 to 9487, the Standard & Poor's 500 dropped 20.48 to 1122.14 and the Nasdaq Composite 27.21 to 1830.23.
Software colossus Microsoft had a particularly grim day's trade as it lost $2.63 to $50.06. Investors are worried the group will miss profit forecasts because of slowing personal-computer sales. The stock has lost 18% in the past two weeks, wiping out about $54bn off its market value.
In Japan, the market soon forgot yesterday's events where it enjoyed its biggest rally in three years. Investors are sceptical that the central bank's return to a zero interest rate policy will kick start the economy. The Nikkei 225 stock average fell 249.97 to 12,853.97.
Drug manufacturers and vehicle manufacturers were worst hit. Groups such as Takeda Chemical Industries and Toyota Motor, which led yesterday's advance, headed the fallers.
Paul Bruns and Elaine Parkes
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