Tuesday, June 29, 2010

'Recovery Summer' continues...

Stocks and interest rates tumble on fears that recovery will fade; Consumer confidence slumps

Associated Press -

Stocks and interest rates tumbled Tuesday after signs of slowing economies around the world spooked traders.

The Dow Jones industrial average fell about 235 points in afternoon trading to drop below 10,000 for the first time since June 10. The Dow and other major indexes each lost more than 2 percent.

Stocks began the day by following Asian and European markets lower. Asian markets fell after an index that forecasts economic activity for China was revised lower. And then European indexes fell sharply after Greek workers walked off the job to protest steep budget cuts.

Then, shortly after U.S. trading began, the market was hit with news that consumer confidence fell sharply this month because of worries about jobs and the overall economy. The Conference Board's Consumer Confidence Index fell to 52.9 from a revised 62.7 in May. It was the steepest drop since February and economists polled by Thomson Reuters had forecast only a modest dip.

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