Stock Market Crash

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The dramatic decline of stock prices on the New York Stock Exchange has caused the Dow Jones Industrial Average to plunge more than 1,300 points. Experts blame the global economic recession and the adjustment of overpriced large technology stocks in the U.S. for the stock market crash.

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The New York Stock Exchange has recorded a sharp drop for two consecutive days. The Dow Jones Industrial Average, which tumbled more than 650 points in midday trade, closed down nearly 550 points. The index lost over 1,300 points in just two days. The S&P 500 and NASDAQ indexes also plummeted. Although some tech stocks, like Facebook, managed to gain on Thursday, it was not enough to prevent stock prices overall from plunging. European stock markets also recorded significant losses. Stock prices nosedived despite the falling interest rates on government bonds and the announcement that the consumer price index in the U.S. grew less than expected last month. Experts say that the stock market crash stems from the adjustment of overpriced IT stocks in the U.S.

[Soundbite] Larry Kudlow(Director, National Economic Council, White House) : "You know I was looking at the segments, 10 major sectors. Tech is up 50% since the election even with this correction. That ain't bad."

Observers also say that the U.S. Fed's plan to raise interest rates keeps undermining investor sentiment. Others blame the global economic recession including financial anxiety in emerging economies for the global stock market woes. Concerns among U.S. businesses over the escalating trade war between the United States and China are also contributing to the sudden crash of the previously thriving U.S. stock market.