Bernanke’s bearish talk extends US losing streak
US stocks extended a losing streak for a fifth day on yesterday on mounting concerns about the economy after bearish comments from Federal Reserve Chairman Ben Bernanke.
The market, which started off on a positive note after the S&P 500 hit a two-month low in the previous session, reversed course to turn negative after Bernanke started speaking. He acknowledged a slowdown in the economy, but offered no suggestion the central bank is considering any further monetary stimulus to support growth.
Bernanke also issued a stern warning to lawmakers in Washington who are considering aggressive budget cuts, saying they have the potential to derail the economic recovery.
A batch of weak economic data recently, especially in the job market, has pushed major indexes below their support levels. The S&P 500 is down 4.2 per cent from a month ago.
The Dow Jones industrial average slipped 19.15 points, or 0.16 per cent, to end at 12,070.81. The Standard & Poor’s 500 Index declined 1.23 points, or 0.10 per cent, to 1,284.94. The Nasdaq Composite Index shed 1.00 point, or 0.04 per cent, to finish at 2,701.56.
Volume was thin with a below-average 6.59bn shares traded.