Dow Jones Index Decreased below the Line of 9,000 Points

As the US stock price has slumped for 3 days, the index of blue chip was fallen down below a line of 9,000 points.

In the New York stock market, the Dow Jones industrial average was off to 8,813.50P decreased by 3.11%(282.59P). It was the lowest points since October 1 directly after 9.11 terror.

Nasdaq Composite was off to 1,346.01P decreased by 2.54%(35.11P). It was the lowest point after the lapse of 5 years since May 1977, and was decreased by 73% over the lowest point of March, 2000. S&P500 INDEX was off to 920.47P, which was the lowest point after the lapse of 5 years. It was decreased by 40% over the lowest point of March in 2000. Bloomberg said “Investors had a valuation loss of USD 23 trillion this year”.

The New York Times analyzed that the stock market has been worse due to complex unfavorable factors such as △Scandal of corporate accounting △ Instability of World politics including the Middle East situation △ Suspicion of economic recovery.

News of a criminal investigation into Qwest Communications of the US further weighed on sentiment. Accordingly, the investment psychology was frozen and the stock price considerably decreased. Owing to this news, the Qwest’ stock price decreased to USD 1.77 from USD 2.60 decreased by 32 for one day. The stock market largely withered, but bond market became active. Bloomberg said that as a forecast that the interest will not increase until 2003 is spread between investors, the bond investment has increased and so 10 year-maturity Treasury Bills earning rate slumped to 4.62% from 4.73% per annum.

konihong@donga.com