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Wednesday 20th of August 2008
January 22, 2008

Dow Jones industrial average sees sharp decline


by Brian Turner
Dow Jones industrial average sees sharp decline

The Dow Jones industrial average saw a steep decline at the opening of trade, plummeting 416 points within the first 10 minutes.

The fall saw the DJ drop from 12,099 points, to 11,682.

However, a shock interest rate cut was announced by the Fed only 30 minutes before the opening of the NYSE.

Seen as a panic move intended to help reassure investors, it may yet help prevent an all out stock market crash on Wall St.

While trades have bounced back within the past 5 minutes to bring the fall in the Dow Jones to only 3%, there remains a long day ahead for investors around the world.

Share prices have been in freefall since this week opened, due to the realisation that the USA may have already entered a recession.

However, US stock markets were closed Monday due to Martin Luther King day, which helped US markets avoid steep losses on Asian and European markets.

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