U.S. stocks fell the most in one month on Wednesday after a private jobs report showed U.S. employers slashed more jobs than forecasted in December, Intel Corp. lowered its outlook forecast and Alcoa Inc. said it plans to cut 13 percent of its workforce.
A report today from ADP Employer Services showed U.S. private cut 693,000 jobs in December surpassing a revised figure of 476,000 lost jobs. For economists, this figure signaled the seriousness of the economic recession.
The Standard & Poor's 500 Index declined 3 percent to 906.65 today, the most since Dec. 1, according to Bloomberg. The Dow Jones Industrial Average fell 245.4 points, or 2.7 percent, to 8,769.7 meaning a decline of 0.1 percent on the year.
Oil futures also declined 12 percent today as the U.S. government reported oil inventories climbed surpassing forecasts.
In corporate news, Intel Corp., the world's top chip maker lowered its outlook on weaker demand for its chips as PC makers had cut production. Aluminum maker Alcoa Inc., plans to cut more than 15,000 jobs to survive the economic downturn and Media company Time Warner Inc. said it plans to book a $25 billion impairment charge in the fourth quarter for its cable, publishing and AOL units.