Stocks had their worst day this year, with the DJIA now plummeting into negative territory for 2012. this Comes after a disappointing jobs report with bad data from China and Europe debt fears shaking investors.
The Dow Jones Industrial Average lost 274.88 points to close at 12,118.57. The S&P 500 lost 32.29 points, to close at 1,278.04. The Nasdaq fell 79.86 points to close at 2,747.48.
The Euro’s fundamental troubles are setting the global financial markets on fire. Turning back the clock to 2007-2008. It seems that the Euro Zone’s sovereign debt crisis could be the impetus for the second wave of a makret recession. Transmission is highly likely given the downturn in growth, the exceptionally low yield available to entice investors and the reticence of lenders drying up the credit markets. One difference is that unlike the dollar’s ability to draw benefit from safe have flows; the euro will remain the now the center of a global catastrophe.
This past month has been a spectacularly poor one for the euro. Through May, the shared currency dropped 9.1 percent against the yen and 7.1 percent against the US dollar. The euro is a fundamentally troubled currency.
Brent July crude lost $3.44 to close at $98.43. The weakest close since January 27, 2011Crude lost $3.30 to close at $83.23 a barrel, lowest close since October 7.
Barrick Gold was up over 7% and Newmont Mining was up nearly 6.66%. Facebook tumbled to finish in negative territory, plummeting nearly 27 percent from its market debut of $38 a share.
The social networking giant posted the biggest two week loss of any IPO deal worth over $1 billion since 1995.