Wired PR News.com – The Dow closed at under 8,000 points on Wednesday, worsening fears of an impending deflation for the economy. As reported by the Associated Press (AP), the closing was the lowest for the Dow in five years, with October consumer spending numbers reaching the lowest drop the country has seen in sixty years.
From a consumer standpoint, decreasing prices may seem like a God send, especially when so many have been dealing with job cuts and harsh financial struggles, however as the report states, deflation can be a prelude to the worst to come for the economy.
As quoted of Cowen & Company’s Jon Biele in the AP report, “I don’t know what the catalyst is going to be where we turn the corner and people start buying stocks wholeheartedly again.”
The Dow closed on Wednesday at 7,997 points, a 427 point drop from Tuesday. The Nasdaq fell 96 points as well.