Stocks tumbled around the world, led by China, while the yen, dollar and Treasuries rose as investors speculated that a rally in riskier assets has outpaced prospects for economic growth. Energy and commodity prices also slid.
The MSCI World Index of 23 developed nations sank 2.8 percent at 4:12 p.m. in New York, the biggest retreat since April. The Standard & Poor’s 500 Index lost 2.4 percent to 979.3 after China’s Shanghai Composite Index slumped 5.8 percent, the most since November. The yen strengthened against all 16 of the most-traded currencies tracked by Bloomberg, while the dollar advanced against every one except the yen. The yield on the benchmark 10-year Treasury note dropped to its lowest level in almost a month.
Equities tumbled after foreign direct investment in China fell, Yunnan Copper Industry Co. said there were “no clear signs” of a recovery and Japan’s economy grew less than economists estimated, reigniting concern a 55 percent rally in the MSCI World from March 9 through last week was overdone. The tally of failed U.S. banks this year climbed to 77 last week, while the Reuters/University of Michigan index of consumer sentiment in America showed an unexpected decrease.
All 10 industry groups in the S&P 500 retreated today and 28 of 30 stocks in the Dow Jones Industrial Average declined, sending the measure down 186.06 points, or 2 percent, 9,135.34.
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3 Responses
Oh boy, doesn’t everyone love what the stimulus package is doing for their stock portfolios? How about that new housing project they are building in East New York? Aren’t there enough projects in East New York?!
Bubby,
Don’t you wish for the good old days when the Republican were in charge and the economy was booming.
Stocks slid as investors realize the truth – that there is no end in sight for the recession, and Obama’s number manipulations won’t work.
The economy hasn’t recovered becuase the stimulus plan has not eased our debt burdens – the number one reason for the recession. American families, companies, and gov’t have too much debt.
Had the gov’t let the economy drop, and wiped out all personal and corporate debt, then we would come out of the recession.