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Wall Street started a holiday-
shortened week with little to cheer. Heavily weighed by intensified
debt woes on both sides of the Atlantic Ocean, investors fled
to safe-haven assets, triggering severe sell-off in equity market.
A trader works on the floor of the New York Stock Exchange
in New York, the United States, Nov. 21, 2011. U.S. stocks
ended lower on Monday, with each of the three major indexes
losing around 2 percent. [Xinhua]
The blue-chip Dow Jones industrial average tumbled 248.85
points, or 2.11 percent, to 11,547.31 as of Monday's close,
the third decline in last four sessions.
The broader Standard & Poor's 500 declined 22.67 points,
or 1. 86 percent, to 1,192.98, while the Nasdaq Composite
Index plunged 49.36 points, or 1.92 percent, to 2,523.14,
the fourth straight losses for both indexes. It was also the
first time for the S&P 500 to end below the important
psychological level of 1,200.
The CBOE Market Volatility Index, known as the "fear
gauge" for the stock market, jumped above 35 intra-day
before retreating to the level of nearly 33.
Investors were frustrated by both domestic and overseas news
on Monday.
The super-committee, charged with writing a bill to reduce
the budget deficit by at least 1.2 trillion U.S. dollars over
the next 10 years, was unable to reach a deficit-reduction
deal before Wednesday because of deep divide over taxes and
spending. As a result, an automatic deep deficit-cutting process
will be triggered and investors were concerned that the inability
of the bipartisan Congress will add to chance for another
downgrade of the U.S. credit rating.
In Europe, the already troubled debt crisis showed disturbing
signs of further contagion. Moody's said a recent rise in
interest rates on French government debt and weaker economic
growth prospects could be negative for the country's credit
rating, which added uncertainties to the already serious European
debt woes.
Monday's economic data came in better than expected, but
failed to lift market sentiment. According to the National
Association of Realtors, existing home sales rose 1.4 percent
in October to a seasonally adjusted annual rate of 4.97 million,
better than analysts had expected but still at depressed levels.
Investors also shrugged off deal-making news, which were
usually positive for equities. Viral-drug maker Pharmasset
Inc surged nearly 85 percent after Gilead Sciences Inc revealed
the plan to buy the company for 11 billion dollars in cash
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