Post date: Jul 27, 2011 10:22:26 PM
Economic worries, profit jitters, and the debt standoff in Washington sent Wall Street to its biggest drop in eight weeks
USA-USCLOSE -The U.S. stock market suffered its biggest decline in eight weeks as investors grow increasingly concerned about the economy, with the prospect of a debt showdown in Washington threatening to make matters worse.
The Federal Reserve says economic growth slowed at the start of the second-half of the year.
And the Commerce Department announced a surprise June drop in orders for long-lasting, big-ticket items, known as durable goods.
Meanwhile, a profit warning in the tech sector from Juniper Networks added to worries of a slowdown in business spending.
Many corporate leaders say Washington's debt gridlock is hurting sentiment in boardrooms across America.
So how are international investors viewing the prospect of a U.S. default or credit downgrade, and its impact on financial markets?
Robert Howe is CEO of Geomatrix, a Hong Kong-based hedge fund.
ROBERT HOWE, CHIEF EXECUTIVE OFFICER, GEOMATRIX, SAYING:
"I don't think people will think that it is going to be a cascade like Lehman Brothers. But, it certainly, it certainly does worry the markets. In Asia there is a feeling of, you know, this is sort of a confirmation that it's a turn from an American decade to an Asian decade."
In sweeter news: Shares of Dunkin' Brands, parent of Dunkin' Donuts and Baskin-Robbins ice cream surged over 46 percent after a better-than-expected IPO.
Looking at the final tally: The Dow lost 1.6 percent, the S&P 500 shed 2.0 percent, and the Nasdaq tumbled 2.7 percent.
Stocks were down more than a full percent across Europe.
Conway Gittens, Reuters