Dow drops 200 points in early Monday trading
After the Dow dropped more than 500 points on Thursday, things did not get much better for the U.S. Markets on Monday. Amid concerns of Standard and Poor's downgrading of America's credit rating, the Dow dropped once again, dipping almost 200 points at the start of trading, MSNBC reports.
The week on Wall Street was one of the worst in two years, and culminated in the country's credit rating dropping from the top level of AAA to AA+ On its own, the downgrade may not have been as disastrous, but coupled with the growing debt crisis in the eurozone along with concerns over Japan's recovery from the earthquake, investors have become extremely hesitant.
"Investors are concerned about a rising risk of global recession, credit downgrades especially now in the eurozone, such as France, the threat of a major bank bust and a global liquidity trap as investors stay in cash," Neil MacKinnon, global macro strategist at VTB Capital, told the news source.
Treasury secretary Timothy Geitner was especially critical of Standard and Poor's downgrade of the credit rating. The Associated Press reports he says the move displays how poor the group's lack of knowledge about the U.S. budget is.
It's not just the stock market that's suffering. Job growth has also been slower than expected. The private sector added just 117,000 positions in July, and while the number was above original projections it is still lagging behind the rate of growth for the first half of the year.