(Source: Business Week)
U.S. stocks finished sharply lower Monday, with major indexes sustaining losses of 2.4%-3.4%. Wall Street's slump was sparked by a World Bank report in which the lender cut its global growth
forecast for this year and next, and warned of a long recovery period for the global economy.
Weakness in basic materials, energy, tech, and financial issues weighed on the market.
The stock market, which has moved sideways the past six weeks, could be on verge of a correction after a runup since March, says S&P MarketScope.
On Monday, the 30-stock Dow Jones industrial average finished lower by 200.72 points, or 2.35%, at 8,339.01. The broad Standard & Poor's 500-stock index fell 28.19 points, or 3.06%, to 893.04. The tech-heavy Nasdaq composite index declined 61.28 points, or 3.35%, to 1,766.19.
On the New York Stock Exchange, 27 stocks were lower in price for every three that advanced. Breadth on the Nasdaq was 22-4 negative. The market saw some end-of-quarter portfolio adjusting, according to S&P MarketScope.
Treasury prices were higher in a flight to safety as a $61 billion T-bill auction met with a decent reception. The market is looking ahead to the Fed meeting Tuesday and Wednesday.
The dollar index was higher.
Gold futures were lower, continuing last week's slide.
Oil futures were trading lower, with July Nymex crude sliding to below $67 on worries about the pace of the global economic recovery. Prices for other commodities turned lower as well, damaging sentiment in the energy and materials sectors, which had been buoyant.
Wall Street's slump was sparked by a World Bank report that the global recession is deeper than originally expected. The report adds to the argument that economic recovery will be slower than normal.
Investors also turned cautious ahead of this week's two-day Federal Reserve policy meeting, which kicks off Tuesday. The central bank is expected to leave interest rates unchanged.
On Monday, the 30-stock Dow Jones industrial average finished lower by 200.72 points, or 2.35%, at 8,339.01. The broad Standard & Poor's 500-stock index fell 28.19 points, or 3.06%, to 893.04. The tech-heavy Nasdaq composite index declined 61.28 points, or 3.35%, to 1,766.19.
On the New York Stock Exchange, 27 stocks were lower in price for every three that advanced. Breadth on the Nasdaq was 22-4 negative. The market saw some end-of-quarter portfolio adjusting, according to S&P MarketScope.
Treasury prices were higher in a flight to safety; the market is still facing sales of $104 billion in notes this week, as well as the Fed meeting Tuesday and Wednesday.
The dollar index was higher.
Gold futures were lower, continuing last week's slide.
