23 Jun 2009

Big drop on Wall Street

9:26 am on 23 June 2009

Stocks in the United States had their worst one-day loss in two months on Monday.

The World Bank said prospects for the global economy remain "unusually uncertain" as it cut 2009 growth forecasts for most economies.

Crude oil prices fell $US2.62, or almost 4%, to settle at $US66.93 per barrel.

The Dow Jones industrial average dropped 200.72 points, or 2.35%, to end at 8,339.01.

Standard & Poor's 500 Index was down 28.19 points, or 3.06%, at 893.04. The Nasdaq Composite Index was down 61.28 points, or 3.35%, at 1,766.19.

It was the worst day for the three indexes since 20 April, when results from Bank of America reignited concerns about the banking industry.

Trading volume was moderate on the New York Stock Exchange, where about 1.40 billion shares changed hands - slightly below last year's estimated daily average of 1.49 billion.

About 2.35 billion shares were traded on the Nasdaq - above last year's daily average of 2.28 billion.