News: Stock Market Crash on Long Island
(Long Island, N.Y.) Long Island residents have been reacting to the devastating news concerning the New York Stock Exchange. Monday’s crash caused the market to drop 634.76 points, a 5.55% decrease. The Dow Jones plummeted below eleven thousand, reaching lows for the first time since November.
The Dow Jones is the average price of thirty stocks that represents the largest and most widely traded stocks in the United States. Reports stated that the market underwent the heaviest loss since last year’s flash crash. The flash crash occurred on May 6th 2010 and documented a nine-hundred point drop in the Dow Jones average.
The flash crash drop only lasted an estimated twenty-minute time period and most of the losses were recovered momentarily. Sources claimed that Wall Street has experienced an uninterrupted decline over the last two weeks, beginning in late July of this year. The Dow Jones began the summer with a significantly higher average than yesterday’s records.
Much of these declines come from Friday’s news that Standard and Poors (S & P) has decreased the ratings on the United States’ long-term debt by one notch. The previous pristine AAA rating has now dropped to an AA+ rating. Standard and Poors 500 has dropped six percent, and reports stated that it is at its worst standings since December of two years ago.
The Standard and Poors’ 500 list has been in establishment since 1957. It documents five-hundred large and common stocks that are traded in the United States on either the New York Stock Exchange or the NASDAQ. After the Dow Jones Industrial the Standard and Poor’s 500 list is the most widely followed stock index in the United States.
The downgrade that Standard and Poors has given the United States is the first of its kind ever documented in American history. Officials responsible for the downgrade have reasoned that there is a lack of confidence in American political leaders. Many don’t believe that politicians in the United States will take the necessary steps to avoid a long-term crisis.
Sources claimed that the NASDAQ Composite Index dropped almost seven percent. Many Long Island residents have blamed the national government, congress and the Obama administration, for a lack of action against economic decline. Gold has reached prices of $1,700 per ounce, and reports stated that the President dismissed the market changes while claiming that investors will still stand by the United States.
Records show that five other countries have lost their AAA rating from Standard and Poors. Canada and Australia are among those countries; the shortest amount of time a country has regained the rating was nine years. The longest amount of time taken was nearly two decades.
