NEW YORK -- Investors on Wall Street and around the world sold stocks with abandon Thursday, more convinced than ever that the United States and perhaps the globe are headed for a new recession.
The Dow Jones industrial average fell more than 400 points, the second consecutive rout in the stock market since the Federal Reserve announced a change in strategy for fighting the economic slowdown.
One financial indicator after another showed that investors are quickly giving up hope that the economy can keep growing. The price of oil and metals, both of which depend on economic demand, fell sharply. Traders bought bonds for safety.
By early afternoon, the Dow had erased some of its losses but still appeared headed for one of its worst days of the year. At 1:10 p.m. EDT, the average was down 382 points, or 3.4 percent, at 10,742.
Looking for a safe place to put their money, traders bought American government debt, which they see as less risky than stocks even as the nation wrestles with its long-term budget.
(Copyright 2011 by The Associated Press. All Rights Reserved.)