U.S. stocks sank, extending a global slump, as an unexpected decrease in new-home sales added to concern the seven-month rally in equities outpaced prospects for economic growth. The dollar rose against most major currencies and Treasuries gained, while oil and metals tumbled.

The Standard & Poor’s 500 Index retreated 2 percent to 1,042.63 at 4:08 p.m. in New York, its steepest drop since Oct. 1. The Dow lost 119.48 points, or 1.2 percent, to 9,762.69. The MSCI World Index of 23 developed nations lost 2 percent. Some 14 stocks fell for each rising on the New York Stock Exchange.

(Bloomberg.com)