(PTI) The US benchmark index Dow Jones Industrial Average has plunged to its lowest level in five years, amid negative market sentiments in the world economy and some analysts predicting that recovery could take a long time. In the last ninety minutes of trading, the Dow index dropped to 8,579.19, the lowest level in five years, down as much as 679 points.In percentage terms the Dow saw its 11th largest since the index came into effect, with a fall of 7.3 per cent yesterday.
The fall was witnessed even as foreign ministers of major powers are to meet today in Washington to chalk out steps to restore confidence in the light of failure of measures taken so far, including cut in interest rate, to stem the blood bath.
Analysts said after the seventh straight day of losses, stocks have lost around USD 2.3 billion in a week as investors saw their wealth plummeting by USD 8.4 trillion dollars after year-long decline.
The New York Times reported that no corner of the market was left untouched as investors dumped stocks en masse with 1,754 stock falling and just 87 rising. In the last six trading days, the Dow has plummeted a staggering 2,251.8 points losing 20.8 per cent.
Besides, 'The Times' quoted analysts as saying that at current prices, the market is suggesting that investors fear the country could face a severe and long recession that has not been seen since at least the early 1970s.
The global stocks have continued to suffer despite the approval of USD 700 billion bailout package, Dutch government readiness to pump 20 billion euros in the market to shore up banks and other European nations considering similar injection of capital to unfreeze credit markets.