Despite major hubbub across America for the inauguration of President Barack Obama, the Dow Jones Industrial Average fell 332 points to a level below 8,000 Tuesday.
The decline could signal investor uncertainty about Obama but is also a product of dreadful news out of the banking industry. Major American banks such as JP Morgan and Bank of America reported financial-component declines in the range of 19 to 25 percent. The United Kingdom’s government also recently passed a major rescue package for British banks, signaling weakness abroad. The Royal Bank of Scotland is reporting a $40.5 billion loss in 2008.
The current Dow Jones level is at the lowest since it dipped below 8,000 midday Nov. 20.
Though the financial crisis makes today’s dip notable, stock market declines are fairly common on quadrennial Jan. 20’s., happening on 72 percent of inauguration days.
Source:
MarketWatch: US Stocks Continue Day’s Losses As DJIA Pushes Below 8000
