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US markets suffer sharp cut; Dow posts its worst week since 2011

25 Jan 2014 Evaluate
US markets ended sharply lower on Friday mirroring the global sell-off. Dow after falling in triple digit for the second straight day posted its worst week since 2011. Last session's disappointing reading on Chinese manufacturing activity kept generating negative sentiment regarding the outlook for the global economy. On the earnings front too there was disappointment, Procter & Gamble on Friday reported lower quarterly profit, but it left its 2014 sales growth forecast unchanged. Markets could continue to remain under pressure in the week ahead, as investors await the Fed's statement. The Fed will issues its post-meeting statement on January 29 and is widely expected to announce a second phase of tapering. The meeting is also the last to be chaired by Fed Chairman Ben Bernanke, after that Vice Chair Janet Yellen will take over the role.

The Dow Jones Industrial Average slumped by 318.24 points or 1.96 percent to 15,879.11, the Nasdaq plummeted by 90.70 points or 2.15 percent to 4,128.17 and the S&P 500 plunged  by 38.17 points or 2.09 percent to 1,790.29.

Indian ADRs closed in red on Friday, HDFC Bank was down by 1.31%, ICICI Bank was down by 2.05%, Infosys lost 1.67%, Tata Motors was down by 1.63% and Wipro was down by 0.54%.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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