NEW YORK (MarketWatch) -- U.S. stocks fell sharply Thursday, with equities taking their second-hardest hit of the year after U.S. economic data largely disappointed, increasing worry about a global slowdown. Other economic reports had euro-area manufacturing slowing and a gauge of Chinese output also contracting. "We're entering summer, in politics this used to be called the 'silly season,' but I don't think there is a lot of focus on economic fundamentals right now. Some of the economic data is a little on the weak side, but to me the most important thing is the U.S. economy is not very vulnerable to recession right now," said David Kelly, chief market strategist at J.P. Morgan Funds. The Dow Jones Industrial Average fell 250.82 points, or 2%, to 12,573.57. The S&P 500 lost 30.18 points, or 2.2%, to 1,325.51. The Nasdaq Composite retreated 71.36 points, or 2.4%, to 2,859.09.
Much-anticipated review by independent consulting firms finds banking sector requires $77 billion in a worst-case scenario to get back on firmer footing after housing-market collapse leaves it freighted with soured loans.
It’s a situation that seems to defy supply-and-demand logic: If there’s more demand in the housing market, wouldn’t the cost of borrowing funds to buy a home be significantly on the rise?
The Senate on Thursday passed a sweeping, $500 billion farm bill that would end direct payments and other subsidies to farmers, while expanding crop insurance and funneling new money to ‘specialty’ crop growers.
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