U.S Stocks Plummet Hits 4 month Low

The DOW Jones Industrial average closed below 11000 for the first time since March as U.S stocks continued their Bear rush this Wednesday.

Stocks fell for third consecutive day before hitting four month lowest amidst speculation that Fed will raise interest rate to control inflation despite a slowing economy.

Since June 2004, the Fed has raised the benchmark interest rate 16 straight times. Since then, the rate has gone up from 1 percent to 5 percent. Investors were hoping that a slowing economy would cause the Fed to pause the rate increases.

Stocks fell despite a plunge in crude oil prices. Crude oil for July delivery tumbled 2.3 per cent to 70.82 dollars a barrel in New York.

The blue-chip Dow lost 71.24 points, or 0.65 per cent, to 10,930.90. The broader Standard & Poor's 500 Index was down 7.70 points, or 0.61 per cent, to 1,256.15. The technology- heavy Nasdaq Composite Index fell 10.98 points, or 0.51 per cent, to 2,151.80.

On currency markets, the US dollar increased against the euro, climbing to 78.18 euro cents from 77.91 euro cents on Tuesday. The US currency also rose against the Japanese yen, closing at 113.50 yen from 113.26 yen on Tuesday.