Renewed economic concerns weigh on U.S. stocks

08:16, June 25, 2010      

Email | Print | Subscribe | Comments | Forum 

Wall Street tumbled on Thursday, with all three major indexes falling about 1.5 percent, as renewed concerns over global economic recovery weighed on sentiment.

The Labor Department said on Thursday that the number of people filing for jobless benefits decreased by 19,000 to 457,000 in the week ended June 19. The initial claims were better than analyst had anticipated, but remained at a relatively high level.

Separately, the Commerce Department said orders for durable goods dropped by 1.1 percent to a seasonally adjusted 192.01 billion dollars, falling short of market expectation.

Stocks seemed to be pressured by renewed economic uncertainty after the Federal Reserve became more cautious about the U.S. economic recovery in its latest statement.

The Fed said on Wednesday that the economic recovery is " proceeding," which was not as positive as the view at the April meeting when the Fed said economic activity continued to " strengthen." In addition, the central bank also indicated the debt problem in Europe posed a risk to U.S. economy.

The dollar also took a hit by the Fed's less upbeat U.S. outlook, with the euro advanced to 1.2332 dollars in late New York trading. However, the euro's gains was capped as worries over Greece still hung over the euro zone as the cost of protecting its government debt against default hit a record high.

On commodities market, crude oil for August delivery achieved a modest gain after a late-session surge erased sharp early losses, supported by a strong euro. Light, sweet crude for August delivery settled 16 cents higher, at 76.51 dollars a barrel on the New York Mercantile Exchange. In London, August Brent crude on the ICE futures exchange settled up 20 cents, to 76.47 dollars a barrel.

As of Thursday's close, the Dow Jones industrial average fell 145.64 points, or 1.41 percent, to 10,152.80. The Standard & Poor' s 500 index dropped 18.35 points, or 1.68 percent, to 1,073.69 and the Nasdaq tumbled 36.81, or 1.63 percent, to 2,217.42.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion