Recession fears cripple stocks
Worries that the economy is not likely to recover as soon as had been hoped drag on markets. Dow, S&P 500 and Nasdaq drop over 2%.

By Alexandra Twin, CNNMoney.com senior writer
Last Updated: June 15, 2009: 5:51 PM ET

NEW YORK (CNNMoney.com) -- Stocks slumped Monday as weaker oil prices and more geopolitical unrest raised worries that the recession may not be waning as soon as some had hoped.

The Dow Jones industrial average (INDU) lost 187 points, or 2.1%. After ending last week in positive territory, the Dow is now back in the red for 2009.

The S&P 500 (SPX) index lost 22 points, or 2.4% and the Nasdaq composite (COMP) fell 42 points, or 2.3%.

Wall Street has been steadily rising for three months on bets that the pace of the recession is waning, with the S&P 500 up 40% during that period. But a lack of new evidence to support the rally has left stocks rangebound over the last few weeks.

"People are re-evaluating the run up," said Kim Caughey, senior equity analyst at Fort Pitt Capital Group.

In the short term, she said that comments coming out of the Group of Eight finance ministers' meeting last weekend were exacerbating worries about the health of the global economy.

"At the conference, some countries expressed interest in pulling back on spending and that has some investors worried," Caughey said. "We're looking for those mythical green shoots of the recovery and you have people saying they are going to take the fertilizer away."

She said the ongoing weakness in the labor market and the outlook for consumer spending were also in play. And investors are starting to conclude that second-quarter results due out next month are going to remain lackluster.

"I think a selloff was way overdue," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. "There are some encouraging signs out there, but we are still in a recession."

In addition, geopolitical factors were in force, he said. "I think Iran adds fuel to the fire. But we also had comments from North Korea over the weekend about nuclear weapons, and that's a factor too."

A falling dollar has given a boost to oil, gold and other dollar-traded commodities of late, as well as the underlying commodity stocks. But the dollar was mixed Monday and the price of oil settled at $70.62.

http://money.cnn.com/2009/06/15/markets/markets_newyork/?postversion=2009061517

..it's sad when one's quality of life is ruled by cash and commodities..WWJD...

He'd buy gm stock now.

or he'd exchange his dollars for yuan currency before it is too late

Actually, I think the Euro is gonna be the standard soon.