|
 Wall Street plunged Thursday amid worries that the U.S. could be stuck in a period of slowing economic growth and rising inflation
-- and that the Federal Reserve would refrain from further interest rate cuts to ensure that inflation doesn't get out of hand. The Dow Jones industrial average fell more than 360 points.
The market was also unnerved by news that consumers cut back their spending in September and that the manufacturing sector expanded in October at the slowest pace since March. Still, earlier in the week, an initial estimate of third-quarter economic growth came in stronger than economists had expected, at 3.9 percent.
Dow futures shed 51.00, or 0.40 percent, to 13,557.00. Standard & Poor's 500 index futures fell 6.70, or 0.40 percent, to 1,509.10. Nasdaq
100 index futures lost 7.80, or 0.40 percent, to 2,207.80.
Bond prices rose. The yield on the 10-year Treasury note, which moves opposite the price, fell to 4.33 percent from 4.35 percent late Thursday.
Oil prices rebounded in preopening trading on the New York Mercantile Exchange, after dropping sharply a day ago. Prices have been exceptionally volatile in recent days as the market treads through record territory. A barrel of oil rose 14 cents to $93.63 after topping $96 overnight Wednesday.
[to top of second column] |
 Gold prices dipped in electronic trading, while the dollar traded mixed.
In Europe, Britain's FTSE 100 fell 1.14 percent, Germany's DAX index shed 0.96, and France's CAC-40 declined 0.96 percent.
Asian markets tumbled in the wake of Wall Street's losses on Thursday. Japan's Nikkei stock average fell 2.09 percent, while Hong Kong's Hang Seng index fell 3.25 percent.
[Associated Press; By LAUREN VILLAGRAN]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
 |
