HONOLULU (HawaiiNewsNow) - Financial markets around the world are bracing for what could be another wild ride. Thursday, the Dow Jones nose dived more than 500 points, and it's slide caused a chain reaction in Asia.
With the sound of the closing bell, the nightmare on Wall Street finally ended, but the year's gains were wiped out. It's the biggest sell off on Wall Street since the financial crisis in October of 2008.
The market dives began in Europe, where the possibility of Italy and Spain needing bailouts had nervous investors cashing out. Huge losses were seen in England, Germany and France.
The sell off then spread to United States markets. Here, folks are worried about high unemployment, the sluggish economy, and another recession. We caught up with our resident market analyst, Howard Dicus, to see how the drops will affect us. He explained, "The most immediate effects of this are actually good things like lower mortgage rates and lower oil prices. In the stock market, things change every minute and every second, and it's more volatile that it ever was before."
Doreen Mogavero, a stock trader on the New York Stock Exchange, said, "The combination of everything is frightening. There's a psychological component that's going to be hard to shake."
"These are big issues and our work is not done. We need to continue to focus on what we can do to ensure that our economy grows and creates jobs," added White House Press Secretary, Jay Carney.
Fear could spread further when the Labor Department releases its monthly job report Friday. Unemployment was last measured at 9.2%. Analysts expect the U.S. economy will have created more jobs in recent months, but if the news is bad, stocks could plummet even more.
Hours after the Dow Jones' drastic dip, the Asian stock markets dropped as well. Around 7 p.m. Hawaii time Thursday , Japan's Nikkei closed with a nearly 4% loss. That's its lowest average in five months. Hong Kong saw shares dip to a ten month low. Taiwan's market dropped nearly 6%, and Australia's down more than 4%.