NEW YORK: Wall Street stocks plunged Monday, giving back most of their gains from the past week, amid bleak economic news from around the globe including confirmation of a recession in the United States.The Dow Jones Industrial Average sank 679.95 points (7.70 percent) to close at 8,149.09, in the fourth-steepest point loss in history for the blue-chip index.The Nasdaq composite plummeted 137.50 points (8.95 percent) to 1,398.07 and the broad-market Standard & Poor's 500 index sank 80.03 points (8.93 percent) to 816.21.A pullback was expected after a huge snapback rally over the past several sessions, with the Dow posting its best five-day percentage increase since 1932 of 17 percent. But selling began early and quickly became a freefall.Market action came as the economic panel recognized as the arbiter of business cycles said the US had entered recession in December 2007 based on its measure of income, employment and other factors."The market has gotten off to a tough start to the week today, as recession fears have now become a reality, and the questions that remain are just how bad and for how long this recession will linger over us," said Michael Fowlkes, analyst for the online investment service Investors Observer.Also, a survey of the manufacturing sector showed the weakest conditions since 1982.The 10-year US Treasury bond yield fell to 2.719 percent from 2.957 percent Friday and that on the 30-year bond dropped to 3.236 percent against 3.487 percent. Bond yields and prices move in opposite directions.Citigroup tumbled 22 percent to 6.45 dollars, handing back much of its gains from an 18 percent rally following the government bailout of the banking giant a week ago. Elsewhere in the sector, Bank of America declined 20.9 percent to 12.85 and JPMorgan Chase shed 17.5 percent to 26.12 dollars.Yahoo lost 6.7 percent to 10.74 dollars as markets mulled reports that the struggling Internet giant might seal an alliance on search advertising with Microsoft, down 7.96 percent at 18.61.Ford gave back early gains and fell 5.2 percent to 2.55 dollars as the sputtering automaker said it was studying the sale of its Volvo Car unit to cope with weakening sales.
News Source:http://www.thearynews.com/
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