Economy Recession fears send stocks plunging October 16, 2008 AAP
Investors agonising over a faltering economy sent the stock market plunging all over again overnight after two disheartening reports convinced Wall Street that a recession, if not already here, is inevitable.
The Dow Jones industrials dropped as much as 770 points, more than half their huge 936-point advance from Monday, and all the major indices closed down more than 7.5%.
A sell-off that intensified late in the session left the Dow down 733.08, or 7.87 percent, at 8,577.91. On Monday, Sept. 29, the Dow had its largest point drop 777.68. The Dow's massive decline marks its 20th triple-digit move in 23 sessions.
Broader stock indicators also skidded. The Standard & Poor's 500 index fell 90.17, or 9.03 percent, to 907.84, and the Nasdaq composite index fell 150.68, or 8.47 percent, to 1,628.33.
The government's report that retail sales plunged in September by 1.2 per cent - almost double the 0.7 per cent drop analysts expected - made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.
The release of the Beige Book, the assessment of business conditions from the Federal Reserve added to investors' worries. The report found that the economy continued to slow in early autumn as financial and credit problems took a turn for the worse.
The central bank's report supported the market's belief that difficulties in obtaining loans have choked growth in wide swaths of the economy.
Fed Chairman Ben Bernanke warned in a speech that patching up the credit markets won't provide an instantaneous jolt to the economy.
LONDON - Leading European stock markets plunged six per cent to seven per cent at the close of trade Wednesday on mounting fears of recession in Europe and the United States.
The London FTSE 100 index of leading shares shed 314.6 points, or 7.16 per cent, to close at 4,079.59.
FRANKFURT - In Germany, the benchmark DAX slumped 337.56 points, or 6.49 per cent, to 4,861.63 points.
PARIS - In France, the CAC 40 fell 247.45 points, or 6.82 per cent, to 3,381.07 points.
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