U.S. stock market reaches annual lows
S & P 500 dropped to the lowest intraday level reached in 2010; the value is 1040.78 points, a move that could trigger massive selling future U.S. stock market, informs Reuters.
Economically sensitive sectors are materials, industrial and financial; they are the hardest affected by lowering the index.
Appeared again fears of power and strength of the banking system, with investors worried about possible problems related to lack of liquidity, with over 100 billion into the financial system, given that European banks have paid the 442 billion grant Tuesday form an emergency loan from the European Central Bank.
KBW Bank Index, an index of banking companies, fell 4.4 percent, giving a strong signal loss.
CBOE index futures and options market contracts in U.S., known as an indicator of fear on Wall Street fell by 22 percent, indicating that volatility is increasing and that what is worse may follow.
Consumer confidence level in the United States fell sharply in June, after rising three consecutive months, in conditions which were widespread concerns about the labor market. There are new concerns about a possible slowdown in growth of amid pessimistic information on labor market and U.S. real estate market.
New York Stock Exchange, American Stock Exchange and Nasdak were 11.38 billion shares traded, above the estimated daily average last year which stood around 9.65 billion shares.
Declining number of shares exceeding the number in advance of the price on the NYSE by 2831 compared with 259, while the Nasdaq was 2393 shares declining compared with 279 in advance.11