Dow Drops 270 Points, Erasing All Gains For Year
CNN Breaking:
Wall Street suffered its bloodiest day of the year as U.S. stocks sank more than 2% following an ugly jobs report. The Dow erased all its gains for the year, dropping more than 270 points for the day.
The 10-year yield on U.S. Treasuries hit another record low after the jobs report showed only 69,000 jobs were added to payrolls in May. The unemployment rate ticked higher for the first time in a year, rising to 8.2%.
I don’t know what’s worse news: that the Dow lost six months worth of gains in a single day or that it was only 270 points.
UPDATE: A commenter points out that today’s loss brings us to the lowest total of the year–but that other losses have helped contribute.
That’s not the case, the Dow peaked at the end of April and has been dropping the whole month of May. Losing around 1300 points the last 270 of which was today. Not good but not particular as shocking as the Dow only gaining 270 points in six months only to lose it in one day.
@Tad: That makes more sense!
Isn’t the real problem here, in many respects, the assumption by people that we’ve “fixed” the problems facing our economy and now there’s an expectation we’re going to snap back to the status quo of the 90s and 00s any day now? The idea that we may continue to face fundamental challenges that require different policies than the recent past appears to have not occured to most folks on Wall Street and within The Beltway.
Mike
I remember Robert Reich’s remarks about the “X” shaped recovery – the one with no road that leads us back to where we were.
If you own bonds this is the time to make a killing. Money is flooding into the last safe haven on the planet: U.S. Treasuries.