Tuesday, December 2, 2008

Wall St. plunges after U.S. recession made official

NEW YORK: US stocks dived deeper into the red today after an official panel confirmed that the economy has been in recession since December 2007, sparking fresh worries amid the global financial crisis.

The Dow Jones Industrial Average plummeted 443.80 points (5.03 per cent) to 8,385.24 at 1807 GMT after five winning sessions.

The tech-heavy Nasdaq slid, 94.57 points (6.16 per cent) to 1,441.00 and the broad-market Standard & Poor's 500 index dropped 53.86 points (6.01 per cent) to 842.38.Stocks extended opening losses after a panel of economists charged with the official designation of business cycles said that world's largest economy has been in recession since December 2007.

The Business Cycle Dating Committee of the National Bureau of Economic Research said it made the determination during a conference call on Friday.It uses its own criteria to determine a recession, generally defined as two consecutive quarters of declining activity.

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