Stocks slump on weaker growth forecast
Trader Joseph Lawler, center, works on the floor of the New York Stock Exchange Tuesday, Oct. 9, 2012. Another dire prediction about global economic growth is sending stocks lower on Wall Street in early trading on Tuesday. (AP Photo/Richard Drew) Purchase photo reprints »
Trader Andrew O'Connor works on the floor of the New York Stock Exchange Tuesday, Oct. 9, 2012. Another dire prediction about global economic growth is sending stocks lower on Wall Street in early trading. (AP Photo/Richard Drew) Purchase photo reprints »
Specialist Thomas McArdle, left, and trader Michael Zicchinolfi work at the post that handles Edwards Lifesciences on the floor of the New York Stock Exchange Tuesday, Oct. 9, 2012. Edwards Lifesciences dropped $21.05 to $86.31 after the company reported revenue that fell well short of analyst's forecasts. (AP Photo/Richard Drew) Purchase photo reprints »
Trader Brandon Barb, left, works on the floor of the New York Stock Exchange Tuesday, Oct. 9, 2012. Another dire prediction about global economic growth is sending stocks lower on Wall Street in early trading. (AP Photo/Richard Drew) Purchase photo reprints »
Lucia Cuttone works with fellow traders on the floor of the New York Stock Exchange Tuesday, Oct. 9, 2012. Another dire prediction about global economic growth is sending stocks lower on Wall Street in early trading. (AP Photo/Richard Drew) Purchase photo reprints »
NEW YORK (AP) — Stocks slumped Tuesday on Wall Street after the International Monetary Fund predicted weaker world economic growth and as investors waited for what they expected to be lower corporate earnings.
The Dow Jones industrial average declined 110.12 points, or 0.8 percent, to 13,473.53. The Standard & Poor’s 500 index dropped 14.40 points, a hair under 1 percent, to 1,441.48. The Nasdaq composite index lost 47.33 points, or 1.5 percent, to 3,065.02.
The slide came on the five-year anniversary of record high closes for the Dow and S&P 500. The Dow is about 700 points off its all-time high, 14,164.53. It would take a 5 percent rally from here to reach the record.
Investors were discouraged by an International Monetary Fund report released overnight that said the global economy was weakening and the downturn afflicting developing nations has begun to spread.
The weak forecast came one day after the World Bank cut its estimate for growth in China, the world’s second-largest economy, and for developing countries across Asia.
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