Gripped by fear of a new recession, the stock market suffered its worst day Thursday since the financial crisis in the fall of 2008, the markets are definitely gripped by gear of a new recession The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline.

The sell-off wiped out the Dow’sThe remaining gains for 2011 were wiped out. It put the Dow and broader stock indexes into what investors call a correction — down 10 percent from their highs in the spring.
“We are continuing to be bombarded by worries about the global economy,” said Bill Stone, the chief investment strategist for PNC Financial.

The day was reminiscent of the wild swings across the financial markets that defined the financial crisis in September and October three years ago. Gold prices briefly hit a record high. Oil fell even more than stocks — 6 percent, or $5.30 a barrel. And frightened investors were so desperate to get into some government bonds that they were willing accept almost no return on their money.

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