Wall Street tumbles as G20 fails to allay fears

Wall Street tumbles as G20 fails to allay fears

New York: US stocks fell heavily in a tug of war session between bulls and bears after the Group of 20 weekend economic summit failed to calm investor fears and global recession worries intensified.

The Dow Jones Industrial Average dropped 223.73 points (2.63%) to close at 8,273.58 and the Nasdaq fell 34.80 points (2.29%) to 1,482.05 on Monday.

The broad Standard & Poor’s 500 index declined 22.54 points (2.58%) to end at 850.75.

Trading remained nervous as markets reacted to news that Japan had joined the eurozone in recession and more forecasts said the US economy was likely headed for the same fate.

A series of rally attempts failed to hold and selling accelerated late in the day.

“Wall Street, as well as Main Street, continues to suffer from a massive lack of confidence," said Fred Dickson, market strategist at DA Davidson & Co.

The market found little to cheer about from the G20 summit statement in which the economic powers pledged to work together to steady markets and the economy.