US Stocks Fall Back Down Behind Risk-Averse Investor (JPM, BAC, AA)
October 30, 2009 11:58 AM
Investor’s aversion to risk caused US stocks to move lower, stopping the rally stocks enjoyed Thursday after GDP growth was announced.
The Dow fell to 9874, falling 90 points. The fall of financial stocks like JP Morgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) contributed to pull down the index as each of the stocks slid 2%. Alcoa was the stock that lost the most on early trading as it fell 2.6%. Alcoa (NYSE: AA) was also the component of the Dow Jones Industrial Average that gained the most in Thursday’s rally. Merck was the stock that gained the most with gains of 1% after performing the worst yesterday.
Standard and Poor fell 0.8% and the Nasdaq Composite dropped 0.6%. The drop in the S&P500 was due to their stocks in the Financial and Materials industry falling over 2%.
Small Capital Stocks were more affected since they pose greater risk. As a result, The Russell 2000 index dropped 1.6%, snapping back after gaining yesterday. The large drop in the index is illustrative of the risk-averse nature of today’s investor.
