A year after the Dow reached a 12-year low, investors and consumers are warier and thriftier. The change could last.
Stocks rallied in the US and in Europe on Tuesday on expectations of an emergency European Union bailout for Greece. But Greece, with a ballooning national debt, is not out of the woods yet.
Concerns about the ability of Greece, Spain, and Portugal to pay their debts caused the Dow Jones Industrial average to drop more than 100 points, closing below 10000 for the first time since early November.
After spending much of Friday below 10000, the market recovered lost ground amid positive news about unemployment. But the government-debt crisis in Greece is prompting investors to worry, again, about the health of the financial system.
Economists see some optimism in the unemployment rate as well as in other employment data. But overall, jobs are still being lost.
Have the sovereign debt woes of European nations pushed the Dow back to the nervous days of last spring?
Some key lawmakers in the Senate are saying they will vote against the Bernanke confirmation. The Fed chairman’s term expires at the end of this month.
The Dow has lost 552 points since Tuesday. Is it time to worry about US stocks?
President Obama Thursday proposed new limits on banks' size as well as their ability to take risks. The move is part of reform measures to avert a repeat of the practices that led to the financial crisis. The stock market fell in response to the news.