Markets plunge on worries about a world economy slowdown
It was another rough and tumble day on Wall Street.
The Dow plunged 419.63 points to close at 10990.58. The S&P was down 4.5 percent and the Nasdaq was down 5.2 percent.
The tumble follows a poor day for world markets. ABC News reports the selloff comes in response to worries about the stability of European lenders and worries about a world economic slowdown:
Investment bank Morgan Stanley cut its global growth forecast for the year to 3.9 percent, down from a previous forecast of 4.2 percent. The bank cited an "insufficient" policy response to Europe's sovereign debt woes and the possibility of fiscal tightening that could make it harder for businesses to borrow.
Morgan Stanley, which also cut its China growth forecast for next year, wrote that the U.S. and Europe are "dangerously close to recession."
The report stated: "Recent policy errors, especially Europe's slow and insufficient response to the sovereign crisis and the drama around lifting the U.S. debt ceiling, have weighed down on financial markets and eroded business and consumer confidence."