EW YORK (CNNMoney) — Investors lost a trillion dollars in the in the stock market Monday as the debt crisis in Europe, lackluster economic news and a downgrade to the U.S. credit rating spark fears of a double-dip recession.
The Wilshire 5000 Total Market Index, the broadest index of U.S. stocks, lost 891.93 points, or just over 7%, Monday. This represents a paper loss for the day of approximately $1.0 trillion.
When career-networking site LinkedIn Corp. (NYSE: LNKD) started its first day of trading May 19, its shares zoomed 109% from its initial public offering (IPO) price of $45 a share to close at $94.25, and reached a market value of $9 billion – fueling rumors that we’re in the middle of a new tech bubble. And many investors are eagerly awaiting another batch of Internet IPOs. Social networking sites Facebook Inc. and Twitter Inc. and gaming site Zynga Game Network Inc. are all thought to be hitting the market this year.
Some analysts say these companies have uncertain profit potential….