Contact Us

Wall Street Continues Taking Tumble [AUDIO]

Stocks fell on Wall Street Monday over fears about China’s economy and rising bond yields luring money away from stocks.

Mario Tama, Getty Images

It was the first 5 percent decline, referred to on Wall Street as a “pullback,” since November. Investors remained worried about tightening credit in China.

The Dow Jones Industrial Average fell 139.84 points in all, closing at 14,659.

Markets remain vulnerable to any comments from the Federal Reserve about its $85 billion in monthly bond purchases, which have kept interest rates at historic lows and helped drive the stock market’s rally the last four years.

“Everybody is expecting a pullback, and especially coming into the summer months, the market usually tends to decline after May,” said Chief Investment Officer Chris Cordaro, of Regent Atlantic Capital, in Morristown.

But, he advises stock holders to stay the course for the longterm and make sure your strategy is sound.

Pullbacks that occur during bull markets tend to be “nasty and brutish,” but short, said John Manley, Chief Equity Strategist at Wells Fargo Funds Management.

He said it’s common to get declines of three percent to seven percent “as the market restores a reverence to risk to the investing public.”

Before Wall Street opened for trading on Monday, Asian markets were already sharply lower, led by a 5 percent plunge in China’s Shanghai Composite Index. That was the index’s biggest loss in four years.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of WOBM

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for WOBM Listener Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive WOBM Listener Club contests, events, coupons, presales, and much more delivered to you for FREE.