US stocks plunge amid commodity and industrial sell-off
US stocks tumbled on Monday by the most in a month, led by sell-offs of commodity and industrial companies.business Updated: Jun 16, 2009 07:27 IST
US stocks tumbled on Monday by the most in a month, led by sell-offs of commodity and industrial companies.
The drop pushed the Dow Jones Industrial Average back into negative territory for the year.
The blue-chip index had won back all its losses over 2009 Friday for the first time since January. Investors have been buoyed by signs that the US economy - stuck in its longest recession since the 1930s - may be stabilizing.
The plunge on Wall Street also followed a sharp global decline. The pan-European EuroStoxx 50 Index fell 3.1 percent and the MSCI World Index of industrial nations was down 2.7 percent, its worst showing in nearly two months.
Alcoa and Freeport-McMoRan Copper & Gold led commodities in the United States lower. DuPont and Caterpillar led a sell-off of industrial companies after a manufacturing survey by the Federal Reserve Bank of New York fell sharply in May.
Wall Street's weak performance overshadowed an improved forecast by the International Monetary Fund (IMF), which revised upwards its predictions for the US economy in the coming years.
The IMF said the economy will shrink 2.5 percent in 2009 and will grow 0.75 percent in 2010. That is revised from an April prediction of a 2.8-percent contraction this year and zero growth in 2010.