The US economy is currently facing a worse-than-ever situation with plunging housing markets to their lowest level in 15 years and slow progress of the shares of durable goods. Adding to the previous loses; the US Treasury securities hit a 17-months-low on a disappointing auction. Fear of uncertain economic recovery has gripped the markets as majority of the global markets are trading with remarkably low volumes.

A major drop in sales of existing homes was a big reason to worry. The Dow Jones Industrial Average went down by 1.32% while the Nasdaq Composite Index slipped by 1.66% on the third day of the week. The S&P 500 stock Index was down by 1.45 following the thump faced by the material sector as there was a decline of 3 to 5% in the steel stocks. However, the dollar stood firm against the major currencies in the world.

Shares of Medtronic, (the world’s largest medical technology company) dropped by 11% due to dipping first quarter revenues that dragged down the Healthcare sector.

Approximately 4.6 billion shares were exchanged on the NYSE Composite Index today giving a push to the low trading volumes. However, the number could not outpace the losses.

A discussion between the central bank and the US government will be held on the weekend to resolve the blistering issue of the economic recovery of the country. Investors, across the world are keen to see the steps taken by the government to shed the fear of a double-dip recession.