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S&P500 closes lower for fourth day as recession fears bite


The S&P500 index closed yesterday at its lowest point in four days following a steady decline as investors in American stocks concern themselves with the possibilities of a recession.

The prestigious index which contains some of Wall Street's most heralded blue chip giants lost 1.44% to close at 3,941.26, while the Nasdaq Composite sank 2% to finish at 11,014.89. The Dow Jones Industrial Average lost 350.76 point, or 1.03%, and settled at 33.596.34.

The majority of the losses in this week's retraction in US stock values have been caused by bank stocks as well as shares in some media companies, which is perhaps in line with the concern about exposure to unserviceable debt by individuals and businesses should a recession bite.

Morgan Stanley announced this week that its investment banks will be taking a cautious approach. It plans to lay off approximately 2% workers. Although inflation has fallen to 7.7% in the United States, it is well above 10 in the UK and some parts Europe. Large American corporations are heavily involved in large operations, so they need to raise more capital in order to keep up with increasing prices.

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