Stock futures tumble on Goldman Sachs news
NEW YORK — Stock futures fell this morning on concerns about the fallout over Goldman Sachs being charged with civil fraud tied to dealings in bonds backed by subprime mortgages.
Asian markets tumbled in their first trading session since the Securities and Exchange Commission brought civil fraud charges against Goldman Sachs Group Inc. Friday.
World markets are also being dragged down by new measures in China to curb speculative real estate investing.
China said over the weekend it would take more steps to level off real estate prices, which have been rising sharply for months. The government is concerned about speculative bubbles forming and bursting as its economy continues to grow rapidly.
New restrictions might include clamping down on lending to buyers who already own two or more homes. In recent months, China has increased the minimum amount of money banks must hold to slow down lending.
Ahead of the opening bell, Dow Jones industrial average futures fell 48, or 0.4 percent, to 10,936. Standard & Poor’s 500 index futures fell 6.10, or 0.5 percent, to 1,184.20, while Nasdaq 100 index futures fell 9.75, or 0.5 percent, to 2,000.00.
Stocks plummeted Friday after the SEC announced the charges against Goldman. The Dow lost about 125 points, but was down as much as 170 points during the trading session. It briefly fell back below 11,000 during trading. It closed above 11,000 last week for the first time in 18 months.
Meanwhile, bond prices inched higher Monday as investors continue to seek the safety of government-backed bonds. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.77 percent compared with late Friday.
The dollar rose against other major currencies. Gold and oil both fell.
Overseas, Hong Kong’s Hang Seng fell 2.1 percent and Japan’s Nikkei stock average tumbled 1.7 percent. Britain’s FTSE 100 was dropped 0.6 percent, Germany’s DAX index fell 0.4 percent, and France’s CAC-40 fell 0.7 percent.
To sign up for Mississippi Business Daily Updates, click here.
2 Responses to “Stock futures tumble on Goldman Sachs news”
Top Posts & Pages
- School superintendent terminated after party funds, travel questions
- Accounting firm finds problems at troubled MDMR
- Hosemann recruiting Realtors to market tax-forfeited property
- Davis resigns, turning over mayor's office early
- Airline announces new service at Oxford
- Woman indicted for Medicaid fraud; faces up to 35 years in prison
- Telepak strikes another branding deal with C Spire
- Report: State's teacher education programs 'mediocre at best'
- C Spire launches new WiFi On app for Android-powered phones