Dow plunges over 130 points; Nasdaq, S&P 500 sink over 2% after World Bank cuts global growth forecast. Oil prices slump.
NEW YORK (CNNMoney.com) -- Worries about the economic slowdown dragged on stocks Monday morning, after the World Bank said the global recession has worsened.
The Dow Jones industrial average (INDU) fell 130 points, or 1.5%, over an hour into the session. The S&P 500 (SPX) fell 18 points, or 2%, and the Nasdaq (COMP) fell 44 points, or 2.4%.
Stocks were mixed Friday at the end of the first down week in a month on Wall Street. A three-month rally propelled the S&P 500 by as much as 40% off of 12-year lows. But the advance has lost steam lately as investors have worried that the recession may stretch on longer than anticipated.
The World Bank cut its 2009 forecast, predicting that global growth will shrink by 2.9% versus its earlier forecast for a 1.7% contraction. Global trade is expected to plummet 9.7% this year, it said. Developing countries have been especially hard, with the exception of booming China and India
