Kate Gibson, On Thursday August 18, 2011, 4:45 am EDT
NEW YORK (MarketWatch) -- U.S. stocks plummeted Thursday, with the benchmark indexes down about 4% or more, on worries about Europe and the global economy.
“Market sentiment continues to deteriorate amid concerns about the euro-zone banking sector,” Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co., wrote in a note.
U.S. economic reports did not help in allaying concerns, as the number of Americans filing new claims for jobless benefits rose last week; consumer prices climbed 0.5% in July; and the Philadelphia Federal Reserve said factory activity in the region fell sharply in August.
Read more on jobless claims.
Read more on consumer prices.
Read more on Philly Fed.
Morgan Stanley reduced its forecast for global growth, calling Europe’s policy answer to its sovereign debt crisis insufficient; The Wall Street Journal cited people familiar with the matter in saying U.S. regulators had intensified scrutiny of the U.S. arms of European banks, and Sweden’s financial regulator said the nation’s lending institutions must take further steps to ready for Europe’s debt crisis to darken further.
See WSJ story on Fed scrutiny of European bank arms.
After falling as much as 528 points, the Dow Jones Industrial Average (DJIA - News) was lately down 423 points, or 3.7%, to 10,987.21, with all of its 30 components shedding value, led by Bank of America Corp. (NYSE:BAC - News) , off 6.8%.
The Standard & Poor’s 500 Index (TSXV:SPX.V - News) declined 47.97 points, or 4%, to 1,145.92, with industrials slammed the hardest among its 10 industry groups, all of which were losing ground.
The Nasdaq Composite Index (COMP - News) dropped 110.94 points to 2,400.54.
Decliners rapidly outpaced advancers on the New York Stock Exchange, where 349 million shares had traded by 10:30 a.m.