US Stock Market Posts Worst Monthly Decline Since 1930s | Voice of America - English
The U.S. stock markets fluctuated wildly on Monday as investors worried about another spike in oil prices and new concerns about inflation.  Despite some strength in afternoon trading, analysts say record oil prices and continuing fears about the U.S. economy have helped push the Dow Jones Industrial Average to its worst month since the Great Depression of the 1930s.
Wall Streetopened on shaky ground after Friday's stock market plunge - when the Dow JonesIndustrial Average closed more than four percent lower for the week. With oilprices climbing briefly above $143 a barrel for the first time onMonday, investors were anxious. The DowJones Average of 30 of the most widely held U.S. companies is only oneindicator of the nation's economic health. The Dow has fallen nearly 20 percent since October. EconomistMark Zandi says you don't have to be an investor to feel the effects. "Nothing'sgoing right for the average American household. Gas prices are at record highs, stock prices are falling, housingvalues are evaporating. We're losingjobs, unemployment is rising. It's justa very difficult time," he said. In ChulaVista, California, the local government has cancelled the upcoming fourth ofJuly celebrations because of a lack of funds. InMassachusetts, some towns are struggling to raise money for fireworks. And somemotorists wonder how high gasoline prices will go before they are forced topark their cars - or for California biker Brian Hanable, to leave hismotorcycle at home. "I could maybe do five, but once it gets close to $6 agallon it really starts to make you think a lot,"  he says. Despite theeconomic difficulties facing many people, Zandi says it is not all gloom anddoom. Headds, "There are a lot ofcorrectives going on. In the energymarkets we're seeing more supply come on. House prices is a problem for homeowners but for first time buyers thisis great. Housing's going to become more affordable." But therecould be more bad news for the economy before the week is out. A report onautomobile sales for the month of June comes out on Wednesday followed by thegovernment's monthly employment report on Thursday. Analysts predict neither report will bring good news.