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Rocky Road for Wall Street

By: Alexis Christoforous Email
By: Alexis Christoforous Email

August 8, 2011 -

Wall Street will try to bounce back today from its biggest drop in two and a half years.

The Dow plummeted more than 600 points Monday - finishing below $11,000 and triggering a global sell off early this morning.

"I don't want to have my money in the market, you look at the market and everyday it's another 500 points and every day the numbers just keep going lower and lower," says a passerby.

Panic is growing over the nation's teetering economy and the debt crisis in Europe.

Despite those fears and Standard and Poor's recent downgrade of America's credit rating, investors actually pumped money back into US Treasuries Monday.

"If you're looking for a safe home for your cash, many people still think it's the US dollar and US Treasuries," says David Jones, an analyst at IG Investments.

Investors will be looking for a boost when federal reserve officials meet in Washington today. But analysts here on wall street aren't expecting much help.

"They're not going to lower interest rates because they're at zero and they're not going to raise them, that's for sure," says Alan Valdes, a New York Stock Exchange trader.

The Fed could end up reinstating a bond buying program to bolster the economy.

But experts believe the market mayhem will likely continue for some time.
Jack Hough/Associate Editor 1:07
"I think overall in the long term we will see better days and we will be okay, it's just going to be a slog here in the middle," says Jack Hough, and associate editor.

But the longer that slump lasts, the more of a devastating impact it could have on the economy, and the already weak job market.

Alexis Christoforous, CBS News, Wall Street


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