Business | Markets

Mood on Wall Street will remain gloomy

Wall Street's mood will likely remain dark this week as the fallout from the credit crisis continues to corrode the US economy.

  • Reuters
  • Published: 00:02 October 5, 2008
  • Gulf News

New York: Wall Street's mood will likely remain dark this week as the fallout from the credit crisis continues to corrode the US economy.

Questions also linger about the likely effectiveness of the newly passed bailout plan in shoring up the financial system.

The plan will take bad mortgage debt off banks' hands so they can step up lending to households and businesses.

Aside from the bailout, the start of the corporate earnings season will vie for investor attention. Alcoa Inc will kick off the third-quarter company reports on Tuesday.

But corporate results aside, grim economic data - topped by a government report showing the economy slashed 159,000 jobs in September in the biggest monthly decline in five and a half years - confirms that the serious trouble on Wall Street has spread to Main Street.

What's more, lending should remain extremely tight.

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