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U.S. stocks Down, Unemployment Rate Still High

U.S. banking financial report pessimistic on the stock market to make Uncle Sam’s country was experiencing weakening. Fed report reveals, the economic slowdown is still going on long enough, so the level is still unemployment will continue to grow in number.

On Thursday local time, the Fed predicted the unemployment rate could reach 9.6 percent level. This figure is worse than the previous forecast of only 8.8 percent. That  high unemployment that emerged after the U.S. government did stress tests to determine how healthy a bank is in the State uncle Sam.

On the same day, the Fed issued a statement after an internal meeting that the Bank of America get the funds of USD13, 5 billion through stock sales. That caused the bank requires extra effort in order healthy.

Meanwhile, on the other side of the market, shares of energy companies from emerging increased crude oil prices up to USD62 per barrel for the first time since last November. This is the result of U.S. government statements that reveal his side will raise the quota for purchases.

“Thus, what is revealed is the worst scenario. I do not think this would be achieved, after what we witnessed during the six to eight months, it can not be decided even though stress tests against 19 banks have done,” says analyst from Carl Beck Financial Group, as quoted by AP on Thursday (21/5/2009).

The Dow Jones experienced a decline of 52.81 points, or 0.6 percent, to 8,422.04. Whereas blue chip stocks have increased as much as 117 points in early trade. Index Standard & Poor’s 500 slipped 4.66 points, or as much as 0.5 percent to 903.47 positions. Likewise with the Nasdaq index is down 6.70 points, or 0.4 percent to as low as 1,727.84

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