RTTNews - After showing a notable decline in early trading on Monday, stocks have continued lower throughout much of the morning. Renewed concerns about the outlook for the economy have helped to drag the major averages firmly into the red.
Some selling pressure has been generated by news that the World Bank has cut its forecast for the global economy, saying that it now expects economic activity to decrease by 2.9 percent in 2009 compared to its previous forecast of a 1.7 percent contraction.
With commodities prices moving lower amid concerns about the outlook for demand, resource stocks are posting particularly steep losses. Oil service stocks are seeing considerable weakness, as the price of oil falls by more than $2 a barrel.
Significant weakness has also emerged in a variety of other sectors, reflecting broad based weakness on the day. Banking, transportation, networking, and real estate stocks are turning in some of the worst performances.
The major averages have moved well off their worst levels of the day in recent trading, although they continue to post substantial losses. The Dow is currently down 137.39 at 8,402.34, the Nasdaq is down 42.60 at 1,784.87 and the S&P 500 is down 18.58 at 902.65.
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