Dow Jones Update After US Credit Rating Downgrade

The blue-chip Dow Jones Industrial Average tumbled below the psychological level of 11,000 Monday afternoon, dropping 4.58 percent, or 524.49 points, to 10,968.97 as investors lost their confidence.

After downgrading the U.S. debt, credit ratings agency Standard & Poor’s slashed its ratings of Fannie Mae and Freddie Mac due to the two companies’ close ties to the U.S. government.

Market confidence dropped to its lowest in recent times, as traders in the New York Stock Exchange panicked to sell.

The CBOE Volatility Index, a major gauge of market panic, hit 46.90, rising 46.56 percent, or 14.90 points, to the highest since October, 2010.

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