US stocks fall despite global bank rate cuts

08 October 2008 16:19  [Source: ICIS news]

HOUSTON (ICIS news)--US stocks fell in volatile trading on Wednesday, despite central banks around the globe cutting benchmark interest rates.

The Dow Jones Industrial Average fell by 129.75 points, or 1.37%, to reach 129.75 at 10:46 hours New York time (14:46 GMT).

The drop came after the US Federal Reserve Board, European Central Bank, the Bank of England, the Bank of Canada and Sweden's Riksbank cut their benchmark rates by half a percentage point each.

Earlier in the day, US retailing giant Wal-Mart released worse-than-forecast sales numbers. Monsanto stock reached $80.03/share (€58.42/share), up by $5.87/share or nearly 8%.

Dow Chemical stock climbed nearly 2% to reach $28.69/share.

The industrial average has been exceptionally volatile in morning trading. It initially rose following news of the actions of the world's central banks.

The drop in the industrial average continues several days of triple-digit losses as investors worried about the global credit crisis.

The Dow Jones Industrial Average fell by 508 points on Tuesday. On Monday, it dropped by 369.88 points, bringing it below 10,000 for the first time since 2004.

($1 = €0.73)

Additional reporting by Al Greenwood
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