Drop of U.S. Stocks
Posted by Stephen Cline on May 23rd, 2010The U.S. stocks fell to the lowest in 3 months with the uneasiness going on in Europe over their scheduled resurrection of the European economy. Many analysts debates that the U.S. economy is not strong enough right now to avoid another fall is another reason that the U.S. stocks are on a downward spiral.
Many prominent companies in the industrial and energy segment lost points in the index. Many automobile companies also felt the pain of the U.S. index’s fall. There is a strong belief that the European crisis is going to take a while to jump back on its feet and might step into another crisis, and a single remedy is not sufficient to end the crisis. The claims of jobless employees rose to twice the predicted estimate and made the stocks feel their effect.
With the current status of the U.S. stocks in mind the U.S. senate is going to pass the financial bill in a bid to end the speculation over U.S. economy’s recovery. This bill is going to impose limitations on the proprietary trading by banks and helps in forging a customer protection agency whose sole purpose is to stop pressurizing the creditors to pay their mortgage and loan payments. Only time will tell if this bill will do any wonders to the stock market or will further abet its fall?