27-03-2008
US shares fall amid downturn fears
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Shares in Wall Street fell during trading yesterday (March 26th) amid new fears of recession.
Reports show that, despite recent strong performance, the presence of new data suggesting that the wider economy in the US is facing an economic downturn sent shares along a downward trajectory. Indeed, the S&P 500 index yesterday finished trading at 1,341.13, a decline of 0.9 per cent, reports the Financial Times.
"This weaker than expected report points to declining capital spending in the first quarter, falling orders and a significant pickup in inventories in relation to sales," said John Ryding, chief US economist for Bear Stearns, a US bank with a history going back to 1923. "This is another report that has a strong recessionary feel about it."
The Nasdaq composite index also fell, sliding 0.7 per cent to 2,324.36. Stock markets were also affected by concerns over the profit levels of banking institutions.