After inciting a worldwide surge, Wall Street’s rally of gains finds a roadblock as traders begin to think about the possible implications of the “dirty debt” elimination plan announced by the government. Tuesday saw investors changing pace halting stocks’ climb. The previous rally saw stocks at their best in four months.
The Dow Jones went down 1.5%. Standard & Poor 500 closed down by 2% and Nasdaw went down by 2.5%.
Partly to blame was the ease of the excitement caused by the government’s plan to eliminate banks’ bad debt. The market also wasn’t too please with the AIG hearing regarding the bonus controversy in Washington.
Stocks fell to their 12-year lows but have made quite the recovery. Still, Tuesday’s skid was seen by traders as part of short-term ups and downs and are quite optimistic that the gains over the past two weeks is part of the market’s recovery.
Source: CNN Money
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Tags: Recession, Recovery, Stocks, Wall Street