Rout Rounds Globe, Pounds U.S. Stocks
Investor fears of a global recession sent stocks tumbling again yesterday, ending another brutal week with Wall Street in the red.</br></br>But U.S. stocks escaped the level of losses overseas, where several markets plummeted after data showed that the British economy had contracted. Fear that U.S. markets would follow suit caused a morning frenzy in futures trading before the markets opened.</br></br>The Dow Jones industrial average fell nearly 500 points in early trading, but regained ground. It closed down 3.59 percent, or 312.30 points at 8378.95, its lowest close since April 2003. The broader Standard & Poor's 500-stock index was down 3.45 percent, or 31.34 points, closing at 876.77. The Dow and S&P were down 5.45 percent and 5.8 percent, respectively, this week.</br></br>The tech-heavy Nasdaq composite index, which was down 3.23 percent, or 51.88 points to close at 1552.03 yesterday, had the roughest week. It was down 9.3 percent for the week.</br></br>Investors were unnerved by a series of poor earnings reports and indications the financial crisis would weigh down profits into 2009. Several blue-chip firms have lowered their earnings forecasts and announced thousands of layoffs.