vostok
Well-Known Member
The White House is "concerned" about the fall on US stock markets after the Dow Jones
Industrial Average dropped by 1,175 points.
The leading US stock market index closed down 4.6% at 24,345.75.
The White House said: "We're always concerned when the market loses any value but we're also confident in the economy's fundamentals."
The fall surpasses a previous record 777.68 points drop on the Dow Jones during the financial crisis in 2008.
That came after Congress rebuffed a $700bn bank bailout plan following the collapse of investment bank Lehman Brothers.
It is the largest fall in percentage terms since August 2011, when markets dropped in the aftermath of "Black Monday" when Standard & Poor's downgraded its credit rating of the US.
US investors are reacting to small but significant changes in the outlook for the American economy, and what that might mean for the cost of borrowing.
The stock market sell-off accelerated on Friday when the US Labour Department released employment numbers which showed stronger growth in wages than was anticipated.
If salaries rise, the expectation is that people will spend more and push inflation higher
(http://www.bbc.com/news/business-42942921)
