Wall Street Crash by Worse Credit Fears

Sunday, January 13, 2008

Friday was again a worse day for stock trading session on Wall Street, in the midst of fears that the financial sector's trouble with worse credit won't soon end. It is having said that some consumers are collapsing under the influence of a slowdown in economy.

Stock investors are worried about how banks and brokerages will turn out in this quarter after suffering losses in the collapse of the subprime mortgage market. Stock Investors are also anxious after American Express Corp. warned that slowdown in spending and more negligence on credit card payments will impede profit throughout 2008.

Stock traders seemed to grow more distrustful in advance of quarterly result reports due next week from the nation's biggest financial institutions. Merrill Lynch & Co., Citigroup Inc. and JPMorgan Chase & Co. are slated to weigh in next week.

With the beginning of New Year, the stocks have slipped lower. Dow Jones repeatedly falling by whopping triple digits in many single sessions.

The major indexes each lost more than 1 %, including the Dow Jones industrials, which finished down nearly 250 points. The Dow is down 4.96 % for the year. The S&P is down 4.59 %, and the Nasdaq has lost 8.01 %.