Spain turn to Wall Street drop

Stocks on Wall Street fell back on their feet after Spain announced a bank rescue efforts in order not to collapse. The move immediately sparked investor worries about how serious the crisis of Europe.

Direct stocks move lower after the Spanish Central Bank announced a regional savings bank rescue, CajaSur. It immediately sparked fears of the Spanish economy. Rescue CajaSur done some time after the Spanish government announced a number of budget tightening measures.

"Bailout is increasing concern around the issue of European debt and provide enough ammunition for the weakening of stocks," said an analyst with Schaeffer's Investment Research, Andrea Kramer, as quoted from the AFP on Tuesday (25/05/2010).

In trading Monday (5/24/2010), the Dow Jones index slumped 126.82 points (1.24%) to 10066.57 levle. Index Standard & Poor's 500 fell 14.04 points (1.29%) to a level of 1073.65 and the Nasdaq fell 15.49 points (0.69%) to a level of 2213.55.

Banking stocks suffered the greatest pressure to KBW Bank Index fell 3.3%. Wells Fargo shares fell 4.7% after Goldman Sachs cut its rating of the stock from 'buy' to 'neutral'.

"What happened especially in the Greek does not mean much, but when it started to spread to larger countries such as Spain, then this will become an issue. And that's what caused it at this time," said Peter Jankovskis, co-chief investment offincer OakBrook Investments LLC, as quoted from Reuters.

Fairly thin trading, with transactions in the New York Stock Exchange seham only 9.23 billion shares, compared to an average of last year's 9.65 billion.

source....www.detik.com