Go Finance Reporting in NEW YORK - Three U.S. stock indices (U.S.) tumbled more compact than one percent due to the threat of cuts in U.S. debt ratings, debt concerns Europe as well as China's monetary tightening could disrupt global economic growth.
Nevertheless, some analysts said the sell happens is excessive. However, this slowdown is weakening the deepest in this month.
In addition, the rating agency Standard & Poor's also planning to revise its outlook on the rating of U.S. debt down to negative due to tightening budgets did.
While China instead take further action to curb liquidity. Market participants are also increasingly convinced that Greece had to renegotiate the terms of public debt, even though Greek officials denied that the funding soon.
Four stocks fell for every four monitored stocks rose on the New York Stock Exchange and Nasdaq. For comparison, the market reaction of U.S. Treasury bonds and the dollar is more calm.
"Conduct the bond market indicate that we can get a rebound in stocks, at least it is concerned with the news that S & P will lower the U.S. outlook," said principal analyst at Columbia Management David Joy, as quoted by Reuters in Boston.
The CBOE Volatility Index (VIX.) rose 10.7 percent after earlier rising as much as 24.5 percent, which is the biggest percentage jumps every day since February 22.
In late trading on Monday (04/18/2011) local time, the Dow Jones industrial plummeted 140.24 points, or 1.14 percent, to 12201.59. The broader Standard & Poor's 500 index dropped 14.54 points, or 1.10 percent, to 1305.14 and the Nasdaq Composite Index fell 29.27 points, or 1.06 percent, to 2735.38. (GoFinance)
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