The Dow Jones and Nasdaq were both below their 200-day moving averages last week, this stock market fall is the start of something bigger to come. Last week was the worst week this year for stock markets in the U.S and also around the world.
The U.S. Stock Market fell as investors reacted fearfully to a poor earnings report from IBM and to data suggesting the U.S. economy is softening and that consumers are beginning to lose confidence.
The Dow Jones industrial average had a fall of 191.24 points (1.9 percent), to close at 10,087.51. It was the biggest one day fall for the Stock Market since May 19, 2003. The Dow Jones fell 373.83 points (3.6 percent) last week.
It will be interesting to see what Markets in Australia do tomorrow. The Australian sharemarket dropped almost two per cent on Friday, the biggest stockmarket fall since the beginning of 2003 a fall big enough to reverse all of the gains made so far this year.
There are concerns the Australian Stock Market will continue to fall when it reopens on Monday, after the Dow Jones index slipped again after the close of trading in Australia.
They say when Wall Street sneezes the world catches a cold. We will see... It will be interesting to see what happens if the Dow falls bellow 10,000.
A big stock market fall should lead to funds going into gold and silver.