Dow falls below 10,500
Friday 25 June 1999
Treasury bond prices and the dollar also declined steeply, with the end of America's long boom in prospect. The Fed's Open Markets Committee isexpected to raise interest rates next Wednesday, with perhaps more increases to come in the summer.
By early afternoon the Dow Jones index was 180 points lower at 10,486.71 - below the psychological barrier of 10,500. Goodyear Tire & Rubber, a classic cyclical stock, issued a profits warning, and technology stocks were also weak.
The yield on the benchmark 30-year Treasury bond climbed to 6.19 per cent, a 19-month high. The dollar weakened against the euro, with the new currency regaining the $1.04 level.
The Fed chairman indicated earlier this month that interest rates could rise to control inflationary pressure. But some fear a rise in borrowing costs could send Wall Street into a nosedive. "Alan Greenspan wants to let the air out of the stockmarket balloon gently, but the only weapon he's got is a sharp pin," said Gerald Holtham at Norwich Union Investment Management.
Wall Street had one of its best weeks of the year last week as Mr Greenspan's comments were taken to mean interest rates would climb only a quarter point. But the strength of economic data is pointing to a series of rate rises instead.
- 1 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 2 What supermodels really think about posing in the nude
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Black teen in critical condition after store employee 'shoots him for stealing 79-cent pack of cookies'
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
North Korean defector flees to Finland 'with evidence of chemical testing on humans'
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...