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Stocks Whacked On Global Slowdown Concerns

June 22, 2009 4:38 PM EDT
Stocks plunged today after the World Bank said it now sees the global economy contracting by 2.9% during 2009, down from its previous forecast, made in March, of a 1.7% contraction. Today's drop has pushed the S&P 500 negative on the year.

The Dow fell 200.72 points, or 2.35%, to close at 8,339. The S&P fell 28.19 points, or 3.06%, to close at 893. The Nasdaq fell 61.28 points, or 3.35%, to close at 1,766.

In its yearly Global Development Finance report, the World Bank said leading developed nations have incorrectly focused efforts on their own economies, rather than emerging markets. To this point, the World Bank said it expects private capital flows to developing countries to decline from $1.2 trillion in 2007 to just $363 billion in 2009.

Commodity stocks were some of the worst hit today on fears the recent surge off the bottom is too-far-too-fast. Freeport-McMoRan (NYSE: FCX) fell 11.3%, Alcoa, Inc. (NYSE: AA) fell 9%, and Barrick Gold Corporation (NYSE: ABX) fell 6.2%.

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