Service Sector Weakness plunges the Wall Street stocks

February 06, 2008

Wall Street saw another stock trading day of disaster as report came unexpected tightening in the service sector as confirmation the US economy is dipping into recession.

Heavy sell off seen at Wall Street plunged the Dow Jones industrials down 370 points. It was the Dow's biggest percentage drop in almost a year. The report from the Institute for Supply Management washed out the emerging hopefulness about the economy that had sent stocks surging higher last week.

The ongoing disaster at stock market is not stopping. Any news coming from the finance or economy side is not giving a sense of relief to investors to makeup their mind to take further positive positions in stock market.

At current situation according to me, the retail investors should stay away from online stock trading until a clear picture arises where the US economy is headed. However reports of weak service sector and decline in U.S. jobs suggest the economy is on a way to recession.