America may not have defaulted on debt obligations but following the announcement of a debt ceiling deal investors didn’t feel all warm and fuzzy, pushing the Dow Jones down by 266 at the end of Tuesday trading, an eight-straight day of losses.
The Dow fell by 2.2% on Tuesday to 11,867, while the S&P 500 slid 32.9 points and the Nasdaq lost 2.8% of it’s value with a 75.4 point slide.
The slide was put further into perspective when realizing that 90% of the volume on the New York Stock Exchange occurred due to declining stocks.
The eight days of loses which has caused a slide of 858 points is the longest downturn in the economy since the housing bubble burst three years ago.
The sharp decline is also partly to blame on a sharp decline in U.S. manufacturing while data released on Tuesday found that consumer spending fell in June, the first decline in two years.
The market could turn around on Friday if monthly employment numbers are up. The economy is expected to add 57,000 jobs which would put the unemployment rate at 9.2% for the month of July.