Wall St. nose-dives on global growth woes, J&J drowns underneath scandal


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Wall St. nose-dives on global growth woes, J&J drowns underneath scandal

On Friday, December 14th, three major indices of Wall St. took tumbles, as Dow confirmed a correction course amid weak economic data from China and dithered European stocks, while Johnson and Johnson scandal had been the talk of the town, which had eventually caused the most caustic drag of the day.

Upon losing 1.6% in a day, the S&P 600 .SPCY small cap index confirmed that it was in a bearish market, as it has lost 20.05 percent, below its August 31 peak. The report of Johnson and Johnson scandal, soured the market severely, as it ended up wiping up of 40 billion of its market capitalizations.

Investors have been chiefly focusing on the global economic expansion and worry about the US economic growth. In fact, poor economic data from China and the snapped Eurozone shares had also been the talking point of the day.

A head of US equity trading at RBS Global Asset Management, Ryan Larson, said, “Weakness showing through in the Chinese economy in terms of the numbers that were reported as a result of the ongoing trade war was certainly a concern that bleeds into global growth concerns.

On Friday, December 14th market closure, the Dow Jones Industrial Average plunged by 2.02%, the Standard and Poor 500 lost 1.91% and the Nasdaq composite fell 2.26%. The energy index, .SPNY had experienced a 2.4% downstream fall.