As a result of fear for another recession, on last Thursday the stock market faced its worst drop since the fall of 2008 financial crisis. The industrial average of the Dow Jones fell over 500 points, which was its 9th steepest dip. The recent sell off counteracted the Dow Jones’ gains so far for 2011. Now the Dow Jones and other stock indexes are in a “correction” according to investors. The Dow is down ten percent since their highs of last spring. The prices of gold hit a record high value, and the prices of oil even fell lower than stocks, at approximately a decline of six percent. The Dow lost over 1,300 points as a result. The Dow closed at 11,383.68, which is down 512.76 points. Approximately two weeks ago, as a result of the deadlocked negotiations going on in Washington DC investors appeared worried in regards to expanding the ceiling on the government’s debt. When the ceiling was raised for the government immediately investors’ attentions turned toward the economy and resultantly selling accelerated in the market. Then on Friday, after following all this; the government released an unemployment report about July showing expected rise in unemployment, when the rate is already at 9.2 percent. One can only hope for progression in August.



