Worry over the global recession sent stocks sharply lower today, with the Dow Jones industrial average extending last weeks decline and dropping more than 2%.
The World Bank said today the global economy could contract at a 2.9% rate this year, worse than the 1.7% pullback the bank had forecast earlier this year.
The Dow Jones industrial average dropped 200.72 points, or 2.35%, to 8,339.01 and the broad market S&P 500 index lost 28.19 points, or 3.06%, to 893.04. The Nasdaq composite shed 61.28 points, or 3.35%, to 1,766.19. All numbers are preliminary.
Financial stocks, which had led the market from its March lows, were hurt by profit-taking and investor concern over the governments plan to revamp the nations financial system. Among financial stocks in the DJIA, American Express dropped 5.7%, Bank of America lost 9.7% and J.P. Morgan fell 6.1%
Last week, the Dow fell 3%, the S&P 500 lost 2.6% and the Nasdaq composite lost 1.7%.