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US markets slide, IMF predicts near zero growth
Published on Thu, Oct 23, 2008 at 09:19 in 
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New York: The US markets took another battering on Wednesday. Dismal corporate earnings and fears of a recession led to a further decline in US stocks. It was another turbulent day on Wall Street. Stocks skidded further on Wednesday as dismal corporate earnings and fears of a recession led to tumultuous trading.
CNN's Susan Lisovicz said from the New York Stock Exchange that the credit market has been hit.
Stocks are plummeting and oil prices too are falling. The investors are driving down stock, especially in the last hour of trading according to Susan.
Even though Wall Street is in the midst of what is normally the earning season, companies are not making enough profits.
Yahoo and Merck announced job cuts of 10 per cent. The US Labour department said that the economy has seen the maximum layoffs of the season since companies like Ford, Microsoft and UPS are badly hit.
On the Wall Street, stocks tumbled to a lowest in five years on Wednesday following a series of disappointing profits and outlooks from major US companies.
The Dow ended down more than 500 points as weak earnings and slumping oil prices amplified fears of a global recession. The Dow Jones industrial average fell 514.45 points to 8,519.21.
The Standard & Poor's 500 Index dropped by 6.10 per cent, to 896.78, its lowest level since April 2003.
The Nasdaq Composite Index was down 80.93 points, or 4.77 per cent, at 1,615.75, closing at it lowest level since June 2003.
The latest report from the International Monetary Fund paints a picture of gloom for Western economies.
The report says US economic growth will be close to zero or even slightly negative till mid-2009.
Recovery will not start until the second half of 2009 and will be slow.
The report also predicts that growth for most western economies will be close to zero.That is the grimmest prediction and te predicted growth rate is the slowest since the 2001-02 recession.
Meanwhile, Asian stocks slumped and sent the region's benchmark index to the lowest level in four years. This happened after commodity prices tumbled on concern over the global economic slowdown which is reducing demand for raw materials.
Japan's Nikkei 225 Stock Average lost 5.2 per cent to 8,227.75, poised for its weakest close since May 2003.
Equity indexes in Australia, New Zealand and South Korea also tumbled.
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