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Stock, bond yields plunge amidst mounting economic fears.

Stocks and bond yields plunge as fears over global economic recovery mount, following Fed's grim outlook yesterday, and today's report of a sharply widening June trade deficit. All three major indices fell well in excess of 2 percent.

The Dow Jones Industrial Average dropped 265.42 points, or 2.49 percent, to 10.378.83. The S&P 500 sank 31.59, or 2.82 percent, to 1,089.47 (below the key 1,100 psychological level)<br /> The NASDAQ lost 68.54, or 3.01 percent, to 2,208.63.

Meanwhile, the yield on the Treasury's 10-year note plummeted to 2.69 percent -- its lowest level since the equity market bottom of March 2009 -- from 2.77 percent late Thursday.

In after-hours trading Cisco (NASDAQ: CSCO) is plunging more than 8 percent after the company posted revenues that fell below analyst's forecasts.

A report on soft factory data in China added to the worries about a global slowdown, pressuring equities and commodities.

Dow component Walt Disney Co (NYSE:DIS) fell 3 percent despite reporting better-than-expected third-quarter earnings and revenue late on Tuesday.

Semiconductor company Cree Inc (Nasdaq:CREE - News) dropped 13 percenta day after after the company gave a revenue outlook for the current quarter that fell below analyst estimates.<br /><br />One of the few bright spots, Macy's Inc (NYSE:M) rose 5.9 percent &nbsp;after it reported second-quarter earnings that beat expectations and forecast strong full-year same-store sales growth.

Foreign markets also dropped.<br /> Britain's FTSE 100 sank 2.44 percent, Germany's DAX index fell 2.10 percent, and France's CAC-40 shed 2.74 percent.

Oil prices plunged to $77.34 per barrel.
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Publication:International Business Times - US ed.
Date:Aug 11, 2010
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