US stocks sink on growth fears

NEW YORK: US stocks slid sharply Thursday, with the Dow Jones
Industrial Average sinking two per cent, as disappointing economic data
from China and Europe followed the Federal Reserve's slashing its
growth forecast for the United States.


Tech stocks fell broadly, with Microsoft's 2.6 per cent loss
helping pull the Nasdaq 2.4 per cent lower. Growth-related plays like
mining stocks and oil took the biggest falls, with Alcoa sinking 4.3
per cent, Occidental Petroleum 6.1 per cent and Chevron 3.5 per cent.


At the close the Dow Jones Industrial Average was down 250.82 points, or 1.96 per cent, at 12,573.57.


The S&P 500-stock index fell 30.18 (2.23 per cent) to 1,325.51,
while the tech-rich Nasdaq dropped 71.36 (2.44 per cent) to 2,859.09.



The fall came in the wake of disappointing purchasing
manager index reports from China and Europe, both signaling a downturn
in industrial activity.


Meanwhile on Wednesday the Federal Reserve slashed its growth
forecast for the US economy, and disappointed investors by announcing a
renewal of the relatively low-impact "Twist" stimulus and not opting
for a new and bigger quantitative easing program.


"Weak economic data and the reluctance by the Fed to do anything
meaningfully proactive is causing investors to try to take some of the
profits seen since the June 1st low," said Sam Stovall a strategist at
Standard & Poor's.


Big oil fell with the 3.7 per cent-plus fall in crude oil prices in New York and London.


The US West Texas Intermediate benchmark sank US$3.25 from
Wednesday's price to US$78.20 a barrel, the lowest level since the
beginning of October; London's Brent contract fell US$3.46 to US$89.23
a barrel, its first trip below the US$90 line since December 2010.


Shares of ExxonMobil lost 3.4 per cent, Marathon Oil 5.6 per cent,
Suncor Energy 7.4 per cent, and US traded shares of BP 5.2 per cent.


On the Nasdaq, Onyx Pharmaceuticals was a breakout gainer, adding
43.1 per cent, after a panel of the US Food and Drug Administration
approved its myeloma drug Kyprolis for certain treatments. The FDA
still needs to give the drug a final approval. -- AFP