US stocks have tumbled amid intensifying fears that the country’s mortgage crisis is spreading to other markets. The DOW Jones and S&P closed down nearly three percent. Wall Street had previously been on a three-day winning streak fuelled in part by a Federal Reserve statement that the economy was likely to keep growing. Analysts insist there’s no need to panic:
“We would expect this sort of vicious volatility to continue in the short term but, looking out to the long term, we think this is a healthy repricing of risk, more of a correction than a new bear market, so we would advise investors to sit tight.”, said one.