U.S. stocks dropped as a worsening outlook for companies from Goldman Sachs Group Inc. to Google Inc. overshadowed China’s $586 billion stimulus plan and pledges by the world’s biggest nations to bolster economic growth.
Goldman fell 8.5 percent after Barclays PLC said the stock- market rout may drag the firm to its first quarterly loss since going public. General Motors Corp., which last week said it may run out of cash, lost almost a quarter of its value after Deutsche Bank AG said the automaker’s shares may go to zero. Google Inc., the biggest seller of online ads, sank to a three- year low on concern fourth-quarter revenue growth will stall.
The decline in U.S. equities halted a global rally that sent the MSCI World Index up as much as 2.6 percent after China announced its stimulus package and the Group of 20 nations said it will act “urgently” to bolster growth while calling on governments to cut interest rates. The MSCI gauge of 23 developed nations ended the day little changed.
The S&P 500 Index retreated to 919.21, extending last week’s 3.9 percent slide. The Dow Jones Industrial Average lost 73.27 points to 8,870.54. The Nasdaq Composite Index slipped to 1,616.74.
(Bloomberg.com)
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