Stocks Fall on Recession Fears

Drop in oil prices help stocks finish slightly higher

(NEWSER) - Stocks posted moderate gains today as oil futures dropped below $135 per barrel on news of China's move to raise prices by trimming subsidies, MarketWatch reports. With traders little moved by warnings of further writedowns ahead for Citigroup, the Dow closed up 34.03, at 12,063.09. The Nasdaq gained 32.36, closing at 2,462.07, and the S&P 500 rose 5.02 to settle at 1,342.83. More»

What if the end isn't near for the global economy?

(NEWSER) - Certainly, the 8-month-old credit crisis is serious, but the market turmoil is unlikely to kick off the next Great Depression, financial markets editor Mike Dolan writes for Reuters. "You could be forgiven for thinking we will all soon be hoarding food and reverting to a barter economy," he snipes, but the real issue is psychological: "The problem is lack of confidence." More»

Worried over job, credit, health woes, voters put Iraq on back burner

(NEWSER) - With gas prices stratospheric, the housing market tanking, and recession looking likely, voters aren't too worried about Iraq, reports the Wall Street Journal. Job concerns have transformed illegal immigration and health care into major issues. “You have to have a health plan even in the Republican primary,” says John McCain’s economic adviser. “That's a new development.” More»

Only energy stocks advance, with oil briefly hitting $86 a barrel

(NEWSER) - Stocks fell more than they had in over a month today after Citigroup reported a 57% third-quarter loss. Of the S&P's 10 industry groups, only energy advanced, with oil closing at a record $86.13 a barrel. The Dow lost 108.28 to close at 13,984.80, the S&P 500 fell 13.09 to 1,548.71, and the Nasdaq finished at 2,780.05, down 25.63. More»

Investors starting to panic that nobody has answers

(NEWSER) - What's behind the market meltdown? Some on-the-fly observations:

• Ezra Klein, Washington Post : The market is "diving because of forces Washington can’t control, and in many cases, doesn’t understand very well. How many members of Congress do you think could give a coherent account of what has happened to oil or steel prices over the last three years? Or what’s happening in the Eurozone? Or to the yuan?" Nobody knows where the recovery will come from, and the markets are reflecting that panic.