Weak Earnings Spark Selloff --- U.S. Stocks Lose $500 Billion in Three Days, as Fed's Impact Appears to Fade
In just a few days, American corporations have doused months of euphoria for stock investors.</br></br>Companies from Google Inc. and Caterpillar Inc. to DuPont Co. and United Parcel Service Inc. have disappointed investors with lackluster earnings or forecasts, fueling fears the global economic recovery isn't as robust as once thought.</br></br>The Dow Jones Industrial Average tumbled 243.36 points, or 1.8%, to 13102.53. The Dow is now almost 4% below its five-year high reached just before third-quarter earnings season began this month. With Tuesday's declines, some $500 billion has been wiped from the value of U.S. stocks in three days, according to the Wilshire 5000 Total Market Index.</br></br>The sudden slump marks a shift in sentiment for investors, who just two weeks ago were debating how soon the Dow would hit a record. Now the question is how much farther it could fall.</br></br>Stocks had been on a seemingly endless upward march since the beginning of the summer, thanks in large part to renewed stimulus from the Federal Reserve.