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Dow crashes below crucial 10,000 level
THE Dow Jones closed below the psychologically-crucial 10,000 level yesterday as investors shrugged off better than expected US jobs figures to focus on an expected downgrade for US GDP today.
The US blue chip index fell 0.7 per cent to 9986.81 – its lowest level since 6 July ahead of today’s GDP growth for the second quarter which analysts are predicting could be almost halved from the preliminary forecast of 2.4 per cent to just 1.4 per cent.
There are also fears of what Fed chairman Ben Bernanke’s speech on the economy today, will reveal. Investors want to “see if the pulse of the Fed is beating at a fast rate with anxiety over the economy,” said Avalon Partners’ Peter Cardillo.