Wall Street suffered its worst day in two months

Wall Street suffered its worst day in two months as markets closed deep in the red, S&P 500 slipped below 900. Financials and commodities led the stocks down.

Losses were further fuelled by news that the world bank cut its forecast for major economies like that of the US. Market breadth was sharply negative, with losers beating gainers more than 6 to 1. The CBOE volatility index also jumped up 11% to 31.17.

The Dow slipped 200.72 points, or 2.4%, to 8,339.01. The S&P 500 index fell 28.19 points, or 3.1 %, to 893.04. The Nasdaq Composite Index fell 61.28 points, or 3.4%, to 1,766.19.

Commodities too take a hit, crude July contract slips below $ 67 per barrel. Metals too give up sheen, copper down 6% to a 4 week low. Crude for July delivery, which expired yesterday, fell nearly 4% to below $ 67 as the dollar firmed and concerns on the economy weighed on the market. The August contract fell more than 3% to settle at $ 67.50.

In base metals too, copper slumped to the lowest in more than four weeks on concern that China, the world’s largest user, may buy less and as gains by the dollar dampened demand for commodities.

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