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U.S. Markets Drop On Spain Concerns, End May Much Lower
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May 28, 2010 4:55 p.m. EST
Topics: market and exchange, economy, business and finance, securities, United States
Mitchell Jaworski - AHN News Reporter
New York, NY, United States (AHN) - U.S. markets fell about 1 percent on Friday as a downgrade to Spain’s credit rating shook investors, marking a close to a rough month that saw the major indices off about 8 percent.
Before the opening bell, Commerce Department reported that personal spending increased by less than 0.1 percent in April, following a 0.6 percent jump in March. The result fell short of economist estimates for 0.3 percent growth.
However, the news did not weigh too heavily on the market as personal income rose 0.4 percent in April.
Sellers really came into the market midday after news hit that Fitch Ratings Service cuts its credit rating on Spain on to AA+ from AAA. Spain had held the top credit rating since 2003.
The Dow Jones Industrial average shed 122 points or 1.2 percent to close May down a total of 7.9 percent. Dow decliners outpaced advancers 27 to 3 on Friday.
Banking names weighed on the Dow most with Bank of America (NYSE: BAC) and JP Morgan (NYSE: JPM) each falling more than 2 percent.
The S&P 500 fell 14 points or 1.2 percent on Friday as all 10 major economic sectors finished the day lower. Financial weighed on the index most, down 2.1 percent on Friday. For May, the S&P 500 slid 8.2 percent, its worst decline in 15 months.
The Nasdaq Composite fell 21 points or 0.9 percent on Friday, putting 8.3 percent lower for the month. The tech heavy index was led lower in May by Dell (NSDQ: DELL) and Microsoft (NSDQ: MSFT), down 17 percent and 15 percent for the month, respectively.
Crude oil dipped 58 cents a barrel to settle at $73.97 on the New York Mercantile Exchange. Friday’s decline put the commodity down 16.5 percent for the month of May, its worst performance since December of 2008.
Markets are closed Monday for Memorial Day and will reopen on Tuesday, Jun 1. April construction spending will lead of economic data next week.
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