U.S. stocks tumbled the most in a month as investors speculated the Federal Reserve’s quarter- point interest-rate cut will fail to prevent a recession.
Bank of America Corp. and Citigroup Inc. led all 93 companies in the S&P 500 Financials Index lower, and homebuilder shares fell the most ever after the Fed said the housing slump is getting worse. Washington Mutual Inc., the largest U.S. savings and loan, posted its steepest drop in a month on plans to write down the value of its home-lending unit. Freddie Mac, the second-biggest mortgage-finance company, slid for a third day after forecasting a wider loss than analysts estimated.
The S&P 500 lost 38.31, or 2.5 percent, to 1,477.65. The Dow Jones Industrial Average retreated 294.26, or 2.1 percent, to 13,432.77. The Nasdaq Composite Index decreased 66.6, or 2.5 percent, to 2,652.35. Almost 14 stocks declined for every one that rose on the New York Stock Exchange. Treasuries rallied and the dollar weakened against the euro and yen. [MORE]
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Major problemo,
When the Feds think Wall Street is more important than grocery and fuel shopping, we’re in trouble. Lower rates with higher inflation=Lower dollar value internationally=Higher OPEC and gas prices=Higher trucking expenses=Higher grocery, heating and everything cost!
Hashem Yerachem. There is no easy way out of this real estate mess.