It has been another bad day on Wall Street as New York shares tumbled. The Dow Jones ended Tuesday’s trading 2.1 per cent lower, and the Nasdaq closed 2. 37 per cent down. Some of the biggest falls came in the financial sector as the credit turmoil threatens profits at the big banks. The release of the minutes of a Federal Reserve meeting has done little to reassure investors the Fed will take the steps necessary to contain the credit crisis.
On top of that, housing prices in the US, the root of the current problems, showed their biggest decline in 20 years for the second quarter.