Tuesday's mid-afternoon trade: Wall Street hits session lows after Obama's speech

US stock indexes extended losses and hit session lows on Tuesday after President Barack Obama's inauguration speech provided few new details about measures to tackle the growing economic crisis. "I think people were looking for something, new plans, new hopes," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatam, New Jersey.
"They didn't hear something new." President Obama's speech came on the heels of news that State Street Corp, the world's largest money manager for institutions, posted a $6.3 billion unrealised loss in its investment portfolio. J.P. Morgan was the top drag on the Dow, pulled lower by fresh fears about the health of the global banking system and after the State Street news.
Since his November 4 election, Wall Street has bet that Obama will put plans in place to help stabilise the sliding economy and stem rising unemployment. But stocks started the session lower on Tuesday, pushed down by the ailing banking sector and grim earnings expectations. The Dow Jones industrial average fell 178.65 points, or 2.16 percent, to 8,102.57. The Standard & Poor's 500 Index stumbled 25.70 points, or 3.02 percent, to 824.42. The Nasdaq Composite Index dropped 52.07 points, or 3.40 percent, to 1,477.26.