US stocks fall at end of worst quarter since 2008 US stocks fall at end of worst quarter since 2008
US stocks staggered to the end of a dismal second quarter yesterday in another low volume session as investors found little reason to take on risk after conflicting economic data.
The day ended like many during the quarter, with a late-day sell-off as buying interest waned and investors sold underperforming stocks in the worst quarter since the market meltdown triggered by the collapse of Lehman Brothers.
“Just pushing all the garbage off the side of the ship,” Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey, said of the late sell-off.
The S&P 500 fell below the 1,040 level that it had held since February, breaking out to the downside from what chartists call a very bearish “head and shoulders” price pattern and suggesting a major fall could come in the next five months.
To make matters worse, leveraged short ETFs, widely blamed for a portion of Tuesday’s losses, were also cited for the late sell-off as managers piled on bets the market will fall. Those funds shorted the market to keep up with customer demand.
The Dow Jones industrial average dropped 96.28 points, or 0.98 per cent, to 9,774.02. The Standard & Poor’s 500 Index slid 10.53 points, or 1.01 per cent, to 1,030.71. The Nasdaq Composite Index fell 25.94 points, or 1.21 per cent, to 2,109.24.00