Stocks Hit 7-Month Low
June 8, 2010
By Stephen Bernard and Tim Paradis
NEW YORK — Stocks fell to their lowest level in seven months Monday after traders couldn’t shake fears that Europe’s economic problems will derail a global recovery.
The Dow Jones industrial average fell 115 points, or 1.2 percent, to its lowest close since November. The Dow lost 323 Friday after the government’s May jobs report fell short of expectations.
Broader indexes logged steeper percentage drops Monday. The technology-focused Nasdaq composite index fell 2 percent.
Monday’s drop was a smaller-scale repeat of Friday as traders again dumped stocks in the final hour. That signals traders would rather sell than be hit by surprises, especially because Europe’s business day begins before trading opens in the U.S. Some traders say the slide has been overdone but that the market isn’t likely to find much stability until there is a better sense about how Europe’s economies will hold up under heavy cost-cutting.
With only a sprinkling of economic and corporate news to go on, traders again tracked the moves of the euro. The 16-nation currency hit another four-year low and hurt European markets. The euro fell as low as $1.1878 before rising to $1.1915. A drop in the currency is seen as a sign of flagging confidence in Europe’s ability to rein in its debt without falling back into recession.