Wall Street plunged again Wednesday as investors digested an update of Troubled Asset Relief Program (TARP) and Best Buy Co.'s worrisome profit outlook.
Treasury Secretary Henry Paulson gave an update of TARP Wednesday, saying the second half of the US$700 billion financial rescue program will not be used to purchase troubled assets as originally planned. Instead, the program will be used to help relieve pressures on consumer credit in such areas as credit card debt, auto loans and student loans.
U.S. stocks tumbled for straight three sessions amid concerns that a severe pullback in consumer spending will prolong a global economic downturn.
Best Buy, the world's largest electronics retailer, cut 2009 guidance Wednesday on fears that consumer spending will further slowdown.
Investors also closely watched battered auto industry. House Speaker Nancy Pelosi thought General Motors, the largest U.S. automaker, is too big to be allowed to fail and thus wants Congress to support a financial bailout for the troubled U.S. auto industry.
Crude dropped below US$57 a barrel Wednesday on speculation that global economic slowdown will cut demand. Commodity stocks dragged down major indexes.
The Dow Jones fell 411.30, or 4.73 percent, to 8,282.66. The Standard & Poor's 500 index dropped 46.65, or 5.19 percent, to 852.30, and the Nasdaq composite index stumbled 81.69, or 5.17 percent, to 1,499.21.
(Xinhua News Agency November 13, 2008)
