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Chipmakers Downgraded on Wall Street; Deposits a Strong Choice for Investment Safety in Uncertain Times

Posted by: RateAPY Bank Rates News
November 19th, 2009

The stock market has been gaining for weeks, but bad news in the chipmaking industry today resulted in a step backwards. Analysts at Bank of America Merrill Lynch downgraded eight chipmakers, including Intel, causing price drops for companies in the semiconductor sector. The Dow finished down 93.87 (down 0.9%) to end at 10,332.44.

Recent Economic News Has Been Good

Despite this recent hiccup in the Dow, there are indications that the economy is turning around. New unemployment claims are flat and continuing claims dropped slightly. Though economic news in recent weeks has been positive in contrast to the past year, investors are still cautious.

Many traders believe today’s loss in the Dow is only a minor setback. As long as interest rates between banks remain low and mortgage rates to consumers remain low, the economy should continue its recovery. In this time of economic uncertainty, high interest savings accounts and certificates of deposit remain sound liquid investments. Particularly for CDs, compare rates to make sure you’re not locked into a low return should inflation make a comeback.