The Dow Jones closed 297.81 points (3.79%) down last night at 7552.60 after news of further job cuts and government borrowing from Chrysler and General Motors (GM).
The struggling car manufacturers are reported to have announced total job cuts of 50,000 and requested a combined $21.6bn in additional US government loans.
GM is reportedly making the majority of the cuts and is intending to cut 47,000 jobs, nearly 20% of its workforce worldwide and has requested a further $16.6bn from the US Treasury in addition to the $13.4bn already committed.
In light of this GM's shares were hit hardest yesterday shedding 12.80% bringing its price down to $2.18.
Financials also weighed heavy on the index with Citigroup, JP Morgan Chase and Bank of America shedding over 12% of their share price while American Express dropped 11.31% by close of play.
In the UK, the FTSE 100 has so far shown a mute sign it may regain some of yesterday's losses posting a marginal gain of 0.28% by 8:37am.
Early winners include ICAP with a 2.66% share price increase and Liberty International, which is involved in the furore over Facebook's privacy decision this morning, which gained 2.53%.
Financials Old Mutual and HSBC are also early risers gaining 1.87% and 2.07% by 8:49am respectively.IFAonline
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