Stocks Plunge as Attention Returns to Weak Economy
After solid gains Tuesday, Dow drops 456 points in first half of Wednesday's trading
STAN CHOE AP Business Writer
August 10, 2011NEW YORK (AP) -- Stocks are falling in midday trading as investors turn their attention back to the weak global economy and Europe's debt problems.
The Dow Jones industrial average is down 456 points, or 4.1 percent, to 10,779, erasing its 429 point gain from Tuesday, after the Federal Reserve pledged to keep its key interest rate at nearly zero into 2013. The Fed also said growth would be slow.
The S&P 500 is down 45, or 3.8 percent, at 1,127. The Nasdaq is down 83, or 3.3 percent, at 2,399. Gold and Treasurys are rising as money pours into investments considered safe.
French President Nicolas Sarkozy cut his vacation short amid concerns that France could become the next AAA-rated country to get downgraded. The French CAC 40 stock index fell 5.5 percent.