Dow Jones industrial average sees sharp decline

| January 22, 2008 | 0 Comments
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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