Stock market analysts say investors are taking a dimmer view of the nation’s economy. That caused the Dow Jones industrial average on Wednesday to take its biggest loss in more than six weeks. The Dow was down 265 or 2.49 percent at 10,378. The Standard & Poor’s 500 index was down 31 at 1,089, and the Nasdaq composite index was down 68 at 2,208.
University of South Carolina finance professor Alan Berger says investors discovered that the market is not as strong as many thought it was. He says there is uncertainty about the economy.
Berger says, “Investors’ gloom deepened after the Federal Reserve said it would begin buying government bonds to stimulate the economy.” He says the drop concerned a lot of people, but he says several greater market drops have occurred in the last few years during the recession.
Berger says the yield on the U.S. Treasury’s 10-year note has fallen to the lowest level since March 2009 and investors are looking to government securities instead.