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Stocks Smacked By Global Slowdown Fears

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Stocks smacked by global slowdown fears

Dow plunges over 130 points; Nasdaq, S&P 500 sink over 2% after World Bank cuts global growth forecast. Oil prices slump. Bond prices rally.

Last Updated: June 22, 2009: 10:46 AM ET

NEW YORK (CNNMoney.com) -- Worries about the economic slowdown dragged on stocks Monday morning, after the World Bank said the global recession has worsened.

Oil and gold prices slumped and the dollar was mixed. Treasury prices rallied as investors sought safety, sending the corresponding yields lower.

The Dow Jones industrial average (INDU) fell 130 points, or 1.5%, over an hour into the session. The S&P 500 (SPX) fell 18 points, or 2%, and the Nasdaq (COMP) fell 44 points, or 2.4%.

Stocks were mixed Friday at the end of the first down week in a month on Wall Street. A three-month rally propelled the S&P 500 by as much as 40% off of 12-year lows. But the advance has lost steam lately as investors have worried that the recession may stretch on longer than anticipated.

The World Bank cut its 2009 forecast, predicting that global growth will shrink by 2.9% versus its earlier forecast for a 1.7% contraction. Global trade is expected to plummet 9.7% this year, it said. Developing countries have been especially hard, with the exception of booming China and India.

The forecast sent European markets tumbling as well, while Asian markets ended higher.

No economic reports were due Monday, with readings on housing, consumer spending and the labor market due later in the week.

The Federal Reserve Board meets Tuesday and Wednesday to discuss interest-rate policy with an announcement expected Wednesday afternoon. The central bank is expected to hold interest rates steady at historic lows near zero. But as usual, what the bankers say in the statement about the economy will be key.

Bonds: Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.74% from 3.78% Friday. Treasury prices and yields move in opposite directions.

Other markets: U.S. light crude oil for July delivery fell $2.55 to $67 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery fell $14.50 to $921.70 an ounce.

In currency trading, the dollar rose versus the euro and fell against the yen.

Gas prices retreated for the first time in 55 days, falling three-tenths of a percent to $2.69 per gallon, according to AAA. Prices had risen 32% since April 29.

First Published: June 22, 2009: 9:46 AM ET

http://money.cnn.com/2009/06/22/markets/markets_newyork/

A global slowdown! Who could have guessed it? :rolleyes:

Edited by MOP

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No. I rather like it over here, with it's uncluttered lines and simplistic styles. So; is this the dip we've all been waiting for to get in on some of the action we may have missed from the past few months?

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Pssst, come over and join us in the FTSE heading down thread... Mr. Parry has brought bananas.

Or the latest Denninger thread.

No fruity produce there I fear.

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Guest Parry
Or the latest Denninger thread.

No fruity produce there I fear.

I could do a Denninger smoothie. It'll have nuts and bolts on it rather than hundreds and thousands.

Oh, and it will be based on liquidised sand paper that's been patronised to death first.

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Guest theboltonfury

Haven't we just had a Global Slowdown? Surely it can't be time for another?

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Haven't we just had a Global Slowdown? Surely it can't be time for another?

It's not a new one, it's the same one getting worse.

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I could do a Denninger smoothie. It'll have nuts and bolts on it rather than hundreds and thousands.

Oh, and it will be based on liquidised sand paper that's been patronised to death first.

:lol::lol::lol:

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