The Wall Street Journal
August 10, 2010
- A d v e r t i s e m e n t
U.S. stocks sank as weaker-than-expected Chinese trade data added to investors’ jitters ahead of a Federal Reserve meeting.
The Dow Jones Industrial Average fell 87 points in early trading as data continued to underscore slowing growth both in the U.S. and overseas. Disappointing growth in Chinese imports, the first drop in U.S. productivity in 18 months and a decline in small business leaders’ optimism underscored the lackluster global economic recovery.
All eyes Tuesday will be on the U.S. central bank and whether it will decide take further economic stimulus measures at today’s Federal Open Market Committee meeting.
While the recent discouraging economic data have spurred some hopes the Fed will consider restarting its purchases of mortgage-backed securities or Treasury bonds, the central bank may resist the pressure to act. It also could adjust the language of its statement to reflect awareness of the economic uncertainty.