By VINNEE TONG, AP Business Writer
Tue Feb 5, 2008
NEW YORK - Lingering hopes that the U.S. economy might avert a recession withered Tuesday after the nation's service sector — its banks, travel companies, contractors and stores, among others — shrank for the first time in five years.
The stock market reacted predictably:
Stocks plunge on service sector weakness
By MADLEN READ, AP Business Writer
5 Feb 2008
NEW YORK - Wall Street plunged Tuesday, driving the Dow Jones industrials down 370 points after investors saw an unexpected contraction in the service sector as evidence the economy is sinking into recession. It was the Dow's biggest percentage drop in almost a year.
[emphasis added]
Will the Fed respond with another emergency-meeting, mid-cycle rate cut?
They're panicking out there right now, I can feel it.Have a nice day!
[Billy Ray Valentine, Trading Places]
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