Baltic Dry Index Posts Steepest Fall in 10 Months
U.S. stocks extended a worldwide drop, with the Standard & Poor’s 500 Index trimming a sixth straight monthly gain, amid concern the global rally in equities has outpaced the prospects for an economic recovery.
China led the slump as the Shanghai Composite Index tumbled 6.7 percent, the most since June 2008, on concern a slowdown in lending will stifle growth. Freeport-McMoRan Copper & Gold Inc. and Exxon Mobil Corp. dropped as copper plunged the most in two months and oil fell below $70 a barrel. American International Group Inc., the insurer rescued by the U.S., tumbled 9.8 percent to lead the S&P 500 lower on concern the shares are expensive.
The S&P 500 lost 0.8 percent to 1,020.62 at 4:07 p.m. in New York. The Dow Jones Industrial Average retreated 47.92 points, or 0.5 percent, to 9,496.28. The MSCI World Index of 23 developed nations slid 0.8 percent. Five stocks fell for each that rose on the New York Stock Exchange, the broadest sell-off in two weeks.
“China and the U.S. are very economically linked right now,” said Michael Binger, a Minneapolis-based fund manager at Thrivent Asset Management, which oversees about $60 billion. “The stock markets are going to move together.”