Wall Street extended early losses Wednesday, as investors digested an update of TARP program and after Best Buy Co. predicted worrisome lower profit.
Treasury Secretary Henry Paulson gave an update of Troubled Assets Relief Program, saying the second half of the 700 billion financial rescue program will not be used to purchase troubled assets as originally planned. Instead, the program will be used to help relieve pressures on consumer credit in such areas as credit card debt, auto loans and student loans.
U.S. stocks tumbled for straight three sessions amid concerns that a severe pullback in consumer spending will prolong a global economic downturn. Best Buy, the world's largest electronics retailer, cut 2009 guidance Wednesday on fears that consumer spending will further slowdown.
Investors also closely watched battered auto industry. House Speaker Nancy Pelosi thought General Motors, the largest U.S. automaker, is too big to be allowed to fail and thus wants Congress to support a financial bailout for the troubled U.S. auto industry.
Crude dropped below 57 dollars a barrel Wednesday on speculation that global economic slowdown will cut demand. Commodity stocks dragged down major indexes.
The Dow Jones fell 282.27 to 8,411.69. Broader indexes also tumbled. The Standard & Poor's 500 index slipped 29.43 to 869.52; and the Nasdaq fell 41.28 to 1,539.62.
Source: Xinhua
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