Dow Jones Plunges 500 Points, Again

How’s that new crisis-avoiding debt ceiling working out?

Dow Jones plunges about 500 points — more than four percent — as the U.S. markets are under intense selling pressure due to weekly jobless claims rising and more fears of a global recession.

Stocks were in free fall on Thursday after a regional manufacturing report added to already gloomy sentiment on Wall Street, sending traders fleeing equities and into safe-haven assets like gold and Treasury bonds, which rallied. 

……In a sign of the uncertainty in the markets, safe-haven assets rallied in early trading. Gold — which hit a record high in the previous session — jumped $22.80, or 1.3%, to $1,817 a troy ounce. The benchmark 10-year treasury rallied, with the price soaring over $100, and the yield slumping to an all-time low below 2%. 

……The economy has come squarely back into focus with a heavy stream of economic data released on Thursday. Morgan Stanley also warned the global economy is “dangerously close to a recession” and cut its global economic growth outlook significantly. Goldman Sachs also pared back its forecast of economic growth. 

Euro stocks plummeted as well:

The market drops extended to Europe. In London, the FTSE 100 index fell 2.4 percent after a report showed that growth in British retail sales slowed more than economists expected last month. Germany’s DAX index fell 3.5 percent.

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