The Standard & Poor's 500 index entered bear market territory for the first time since 2002 on Wednesday, as shares on Wall Street were slammed by renewed mortgage market and economic concerns.
Considered by many as the bellwether for the US economy, the broad S&P500 closed at its lowest level since July 2006, down 29.02 points (2.28%) to 1244.68.
It comes a week after the mega-cap Dow Jones Industrial Average slipped below the bear benchmark. The Dow also hit a near two-year low yesterday, falling 236.77 (2.08%) to 11147.44.
The tech-heavy Nasdaq didn’t escape the damage, dropping 59.55 (2.6%) to 2234.89.
Financials bore the brunt of the carnage after enjoying a stellar session on Tuesday, with mortgage giants Freddie Mac and Fannie Mae plunging 23.77% and 13.11% respectively. Dow heavyweights weren’t spared, as Bank of America lost 6.29% to 22.06 and Citigroup dipped 5.46% to 16.44.
In London, the FTSE100 is in freefall this morning as the negative sentiment in the US filters across the Atlantic. The blue-chip index is currently 116.80 points (2.11%) lower to 5412.80.
The rollercoaster ride for the London Stock Exchange Group continues, this morning 6.82% behind to 689.50. ITV and retail group Kingfisher aren’t faring too much better, down 6.74% to 40.10 and 4.5% to 99.80 respectively.
Experian is the only stock in the black after recording a 1% organic growth increase in Q2, up 3.6% to 374.25 so far.
In Tokyo, Japanese investors shrugged off the concerns, with the Nikkei 225 finishing Thursday 15.08 yen (0.12%) higher to 13,067.21.IFAonline
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