Dow Plunges 280, Erases Quarter of Year's Gains

Two bleak reports raise fears about recovery
By Newser Editors and Wire Services
Posted Jun 1, 2011 3:05 PM CDT
Dow Plunges 279 on Bleak Data
Louis Silk, center, and other traders work on the floor of the New York Stock Exchange, Tuesday, May 31, 2011.   (AP Photo/Richard Drew)

Fears that the US economy is stalling sent the Dow Jones industrial average down 280 points, erasing more than a quarter of the stock market's gains for the year. A pair of reports raised new doubts about the economy's strength: A key manufacturing index fell from its April level, and private employers added just 38,000 jobs in May, according to payroll processor ADP. Analysts had expected a growth of 180,000.

Stocks fell broadly, with all 30 stocks in the Dow declining. The Dow lost 280 points, or 2.2%, to 12,290. The S&P fell 31, or 2.3%, to 1,315. The Nasdaq fell 66, or 2.3%, to 2,769. Five stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 4.4 billion shares. (More Dow Jones stories.)

Get breaking news in your inbox.
What you need to know, as soon as we know it.
Sign up
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X