NEW YORK: US stocks skidded deeper into the red but off their lows yesterday on fears of a collapse of General Motors and a series of troubling corporate news amid the global credit crisis.
The Dow Jones Industrial Average tumbled 176.58 points (1.99 per cent) to finish at 8,693.96 and the tech-heavy Nasdaq dropped 35.84 points (2.22 per cent) to 1,580.90.
The broad Standard & Poor’s 500 index retreated 20.26 points (2.20 per cent) to 898.95.
“Discussions about the fate of General Motors (GM) and the US auto industry are driving the negative bias, yet a growing sense that the bailout request line is growing longer and more complicated to prioritize is taking a toll on investor confidence,” said Patrick O’Hare, analyst at Briefing.com.
The market nervously was awaiting October retail sales figures and a key consumer confidence indicator due Friday, expected to show a sharp deterioration in the world’s biggest economy.
With no macroeconomic news to digest and the bond market closed in observance of the Veterans Day holiday, investors fixated on the woes in the corporate sector.
GM was under the spotlight after its president and chief executive Rick Wagoner recently appealed for government aid to avert bankruptcy.
After plunging 22 per cent Monday, shares dropped another 13.02 per cent Tuesday to US$2.92, their lowest level since 1943.
In the battered financial sector, credit card firm American Express tumbled 6.17 per cent to US$22.50. The Federal Reserve announced late Monday that AMEX had sought and was granted authority to convert into a full-status bank, making it eligible for aid from the Treasury’s US$700 billion bank bailout package. - AFP
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