Business: Dow Drops

Last week, the Dow Jones industrial average plummeted 317 points, which is equal to about a 1.9% drop, in a single day. The Dow Jones measures the price-weighted average of 30 significant stocks that are traded on the New York Stock Exchange and the Nasdaq. This is the biggest drop in the DJIA since February, and it has erased the gains that the DJIA picked up this year. Several investors believe that the drop was fueled by fears that the Federal Reserve will raise interest rates more quickly than expected, ending the economic stimulus, or boost, from the Fed. This major decline has understandably worried many people about not only the state of the American economy, but also, the state of the global economy. Some of the stocks that are a part of the DJIA include KO (The Coca-Cola Company), PG (Proctor & Gamble Company), and WMT (Wal-Mart Stores Inc.). But even companies, like Yum Brands, and Whole Foods Market, that do not have stocks included in the DJIA were negatively affected by this drop and loss in confidence in investors.

Comments (0)

    Write a Comment