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US stocks drop over 2% amid global growth worries
Source: Agencies |
October 1, 2011, Saturday
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US stocks dropped more than two percent Friday as signs of slower growth spanning China, Europe and the United States, and the ongoing Greek crisis, hung darkly over the markets.
At the end of the worst quarter for global markets since 2008, the Dow Jones Industrial Average closed down 240.66 points (2.16 percent) at 10,913.38.
The S&P 500 dropped 28.98 (2.50 percent) to 1,131.42, and the tech-heavy Nasdaq fell 65.36 points (2.63 percent) to 2,415.40.
Stocks took a hit "amid growing concerns about a global recession following a third-consecutive month of contraction in manufacturing activity in China and disappointing data in Europe," said broker Charles Schwab.
US Commerce Department figures pointed to weakening consumer power as incomes fell by 0.1 percent in August for the first time in nearly two years, even as prices for goods picked up.
"It seems very unlikely that consumers can lead the economy to a faster recovery pace," economists John Ryding and Conrad DeQuadros of RDQ Economics told clients in a briefing note.
Likewise, eurozone inflation surged to a 3.0 percent pace in September, surprising analysts and sending European markets tumbling.
Also driving sellers was the HSBC purchasing managers' index showing a contraction in Chinese manufacturing in September, for the second straight month.
Of the 30 Dow blue chips, only drug maker Merck scored a gain, adding 0.12 percent.
Shares of one-time Dow star Eastman Kodak fell below the US$1 line for the first time, closing at 91 cents. In 1996 the long-time giant of film and image reproduction shares peaked at just over US$80, but it has been in decline ever since the photography world was swept by digital technology and home printers.
Hewlett-Packard dropped 5.6 percent after rival Oracle's Larry Ellison continued to argue that HP vastly overpaid in its US$10.3 billion purchase of Autonomy Corp.
Alcoa, always sensitive to Chinese growth news, lost 4.9 percent.
Casino operator Wynn Resorts fell 8.3 percent on worries China's slowdown could hurt its crucial Macau operations.
Chinese search engine Baidu pared early steep losses and ended with a 3.1 percent decline, after a 9.1 percent fall Thursday.
Bond prices rose. The 10-year Treasury bond yield dropped to 1.92 percent compared to 1.96 percent late Thursday, while the 30-year yield fell to 2.92 percent from 3.00 percent.
Bond prices and yields move in opposite directions.
(AFP)
At the end of the worst quarter for global markets since 2008, the Dow Jones Industrial Average closed down 240.66 points (2.16 percent) at 10,913.38.
The S&P 500 dropped 28.98 (2.50 percent) to 1,131.42, and the tech-heavy Nasdaq fell 65.36 points (2.63 percent) to 2,415.40.
Stocks took a hit "amid growing concerns about a global recession following a third-consecutive month of contraction in manufacturing activity in China and disappointing data in Europe," said broker Charles Schwab.
US Commerce Department figures pointed to weakening consumer power as incomes fell by 0.1 percent in August for the first time in nearly two years, even as prices for goods picked up.
"It seems very unlikely that consumers can lead the economy to a faster recovery pace," economists John Ryding and Conrad DeQuadros of RDQ Economics told clients in a briefing note.
Likewise, eurozone inflation surged to a 3.0 percent pace in September, surprising analysts and sending European markets tumbling.
Also driving sellers was the HSBC purchasing managers' index showing a contraction in Chinese manufacturing in September, for the second straight month.
Of the 30 Dow blue chips, only drug maker Merck scored a gain, adding 0.12 percent.
Shares of one-time Dow star Eastman Kodak fell below the US$1 line for the first time, closing at 91 cents. In 1996 the long-time giant of film and image reproduction shares peaked at just over US$80, but it has been in decline ever since the photography world was swept by digital technology and home printers.
Hewlett-Packard dropped 5.6 percent after rival Oracle's Larry Ellison continued to argue that HP vastly overpaid in its US$10.3 billion purchase of Autonomy Corp.
Alcoa, always sensitive to Chinese growth news, lost 4.9 percent.
Casino operator Wynn Resorts fell 8.3 percent on worries China's slowdown could hurt its crucial Macau operations.
Chinese search engine Baidu pared early steep losses and ended with a 3.1 percent decline, after a 9.1 percent fall Thursday.
Bond prices rose. The 10-year Treasury bond yield dropped to 1.92 percent compared to 1.96 percent late Thursday, while the 30-year yield fell to 2.92 percent from 3.00 percent.
Bond prices and yields move in opposite directions.
(AFP)
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