Fear of U.S. Recession Volume 2, the Dow Jones sales drop 500 pts

Dow Jones finally had to feel the back ambles up to more than 500 points and became the worst since the financial crisis in early 2009.

Dow Jones Industrial Average fell 512.46 points, or 4.31 percent to 11383.98 position. Standard & Poor's 500 index fell 60.21 points, or 4.78 percent, to 1200.13. The Nasdaq Composite Index was 136.68 points, or ambles 5.08 percent, to 2556.39.

Quoted by Reuters on Friday (05/08/2011), in trading on Wall Street, investors sold off stocks where the market is experiencing the worst period since the financial crisis in early 2009,making the market fully corrected.
As for the Dow and S & P dropped more than four percent on Thursday and the Nasdaq lost five percent due to fears the United States (U.S.) in view of the recession that is volume two of Europe's debt crisis is going to swallow the two countries with the largest economy in the continent them.
Analysts predict there will be further losses even though the stock has fallen for nine of the last 10 days."People throw the towel because they can not be relieved," said Milton Ezrati,market strategist at Lord Abbett Co.in Jersey City,New Jersey, the company that manages assets of USD110 billion.
In addition,the S & P 500 drop since April has recorded more than 10 percent. Almost 14 billion shares changed hands,in the busiest trading day for over a year.
Pressure on the market also comes from a number of factors,such as the deteriorating U.S.economic data,thus showing economic growth slowed from the already sluggish pace in the first round. Then the debt crisis of Europe that never found a solution so that threatens to engulf two-nation eurozone economy namely Spain and Italy.
"The problem of debt in Europe,especially with government bond yields on Italian and Spanish are soaring,making investors gather as much liquidity,"said Stephen Massocca,managing director at Wedbush Morgan in San Francisco.