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
Louis Silk, center, and other traders work on the floor of the New York Stock Exchange, Tuesday, May 31, 2011.   (AP Photo/Richard Drew)

(Newser) – 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.

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