US Market Down‏

Worries over Inflation Send U.S. Market down

The U.S. stock market traded down for a second straight day on Wednesday over new concerns about the rate of inflation, according to Bloomberg and other news sources.

bor costs rose 1.8%, which was higher than analysts had been predicting and investors had been expecting. The data raised fears about inflation not being as tamed as the Federal Reserve believes, and interest rates might be targeted for raising by the Fed later on. The Labor Department reported the rise in labor costs while also reporting the expected drop in productivity in the first quarter.

Analysts had expected a 1.3% rise in the cost of labor.The Standard & Poor's 500 index shed 4.69% while the Nasdaq composite index was 3.60% lower by close of trade.The falls came after shares in leading European indexes had ended lower.Earlier in the day, the UK's FTSE 100 index had closed 3.92% down, while France's Cac 40 index shed 3.78% and Germany's Dax lost 2.74%.Asian markets were hit by the news with Australian shares down 1.8%.

The U.S Market Was not only down but it effected the Whole Market special these cities london,tokyo,Sao Palo and may other cities.

Dollar rally unsustainable'

On the London Bullion Market, the price of gold rose to 785.70 dollars per ounce, from 750.25 late on Friday.Gold was bought as a safe haven and initially knocked the dollar to two-month lows against the yen.

Loan fund

Lehman Brothers has suffered losses of billions of dollars in the sub-prime crisis, and has seen its share price plummet during recent months.A consortium of international private sector banks and securities firms announced a new $70bn loan fund, intended for use by financial companies to help ease the credit shortage.

Federal Reserve Bank of Cleveland President Sandra Pianalto and Fed Chairman Ben S. Bernanke issued a statement to the extent that they feel that prices are rising too."Inflation causes reduced consumer spending, it squeezes profit margins. The market has been making new highs. It can't go up forever," John Kornitzer of Kornitzer Capital Management in Shawnee Mission, Kansas, told Bloomberg. quickly.