Deep recession fears slam Wall Street

NEW YORK - Stocks tumbled to 5 year lows on Wednesday as investors grappled with an increasingly dire outlook for the global economy following a raft of disappointing profits and outlooks from major US companies.

Plummeting commodities prices sent energy and materials company shares sharply lower. Exxon Mobil was the top drag on the Dow, down almost 10 per cent.

A plunge in emerging market assets and widespread deleveraging were seen as further signs the credit crisis that has plagued the United States and Europe has begun to hit developing countries. Stock markets around the world have fallen sharply over the last two days.

'The themes remain the same: concerns about global recession, deflation and concerns about significantly reduced worldwide demand,' said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

The Dow Jones industrial average fell 514.45 points, or 5.69 per cent, to 8,519.21. The Standard & Poor's 500 Index dropped 58.27 points, or 6.10 per cent, to 896.78, its lowest level since April 2003.

The Nasdaq Composite Index was down 80.93 points, or 4.77 per cent, at 1,615.75, closing at it lowest level since June 2003.

Source: Singapore Business Times - 23 Oct 2008