Stocks Fall on European Debt Worries
The U.S. equity market ended Black Friday in red as concerns over the debt crisis in Europe mounted. Investors are concerned about the situation in the peripheral euro zone economies. Earlier in the week, Ireland agreed to a bailout package, which calmed markets initially. However, fear returned to the market after a Financial Times Deutschland report claimed that Portugal was being pressed by the European Central Bank and the euro zone to accept an Ireland like rescue package. Markets are also worried about the situation in Spain.
The fear of contagion in Europe continued to push the euro lower today. The euro dropped 1% against the U.S. dollar. The dollar, meanwhile, climbed against all major currencies on European debt crisis worries as well as on concerns that the conflict in the Korean peninsula will escalate. The strength in the dollar also caused a decline in gold prices. Gold for delivery in February dropped 0.8% to settle at $1,364.30 an ounce on the Comex in New York.
After the strong rally on Wednesday, the U.S. equity market ended lower. The Dow Jones ended the day 0.85% lower at 11,092, the S&P 500 ended the day 0.75% lower at 1,189.40 and the Nasdaq ended the day 0.34% lower at 2,534.56.
Among the most active stocks on Black Friday were Del Monte Foods Company (NYSE: DLM), which closed 4.67% higher at $18.83, and CPI International Inc. (NASDAQ: CPII), which ended the day 33.45% higher at $19.31.
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