US Stocks Dipped Into Correction Yesterday On Worries Of Eurozone Stalling The Global Recovery

US stocks plunged yesterday into the first correction of the bull market that started in March 2009, as worries of Europe's debt crisis weighed heavily on the market. The investors took their money out of the companies with high international exposure and did away with a range of assets, such as Australian dollars, Latin American stocks and oil futures, which had soared over the past year. Treasury bonds, however, gained. Art Hogan, chief market strategist at Jefferies & Company, said, "The European community seems less cohesive, Germany is saying one thing and then France is coming out and saying something different." The Dow Jones Industrial Average, after a slight recovery in the afternoon, plunged 376.36 points, or 3.6%, to 10,068.01. The decline outpaced the March 6 Dow crash and is the biggest point and percent drop for this year. The S&P 500 Index dropped 43.46 points, or 3.9%, to 1,071.59. The Nasdaq Composite slipped 94.36, or 4.11%, to 2204.01. The decline marked the measure’s biggest point drop since December 1, 2008 and biggest percentage fall since February 17, 2009. All the 30 components of the Dow fell, the steepest decline being 6.2% in Bank of America Corp

. In the S&P 500, the financial sector led the losses by tripping 4.7%. Some of the Thursday’s worst performers were Alcoa Inc

, which slid 6%, General Electric Company

, which lost 5.8%, Boeing Company

, which shed 4.8%, and Caterpillar Inc

, which fell 4.5%. Todd Hagerman, an analyst at Collins Stewart wrote, "We are becoming increasingly concerned with potential ramifications of the financial-reform bill, as the amendment process has taken a more draconian turn." Read more