US Stocks had a bad start for the year 2008. Dow Jones Industrial Average (DJIA) closed at 12,800 with a loss of 256 points while Nasdaq closed at 2,504.65 after losing 98 points.

John Ryding at Bear Stearns expressed his worries about rise in unemployment numbers in United States. Mr John said that since 1949, the unemployment rate has never gone to such high numbers. This should be considered as an early signs of recession in US economy.

As most of the politicians are busy with 2008 US Elections, there won't be much of change in the situation till the time new government is formed. The bad effect of sub-prime crisis has not been factored in the markets yet.

J.P. Morgan downgraded chip-maker Intel to neutral from overweight. The stock tumbled 8.1% to close at 22.67.

Nasdaq lost nearly 4 percent and closed in the red for 6th day in a row. Over the week, DJIA has lost nearly 4.3 percent. Technical Analysts believe that the year 2008 may not be very good for stock markets. The sentiment is weak and indicates a bear market phase.