Economic, credit fears punish Wall Street

NEW YORK - Stocks slid on Thursday as tight credit markets and bleak economic data forced investors to focus on the rocky road still ahead for the US economy even if Congress passes a US$700 billion rescue package this week.

The Dow shed more than 3 per cent while the S&P 500 and Nasdaq dropped 4 per cent as Wall Street worried the economy may slide into recession, further cutting into corporate profits.

Data showing the number of people filing for unemployment benefits hit a seven-year high painted a troubling picture, as did a report showing a steep drop in factory orders in August.

The price of oil plummeted more than 4 per cent as financial market turmoil stoked concerns about demand for fuel and precious metals slid as the dollar rose.

The Dow Jones industrial average fell 348.22 points, or 3.22 per cent, to 10,482.85, while the Standard & Poor's 500 Index slid 46.78 points, or 4.03 per cent, to 1,114.28. The Nasdaq Composite Index dropped 92.68 points, or 4.48 per cent, to 1,976.72 - a three-and-a-half-year low.

Source: Singapore Business Times - 03 Oct 2008