Specialists Robert Tuccillo, left, and Frank Masiello work on the floor of the New York Stock Exchange Wednesday, Oct. 15, 2014.NEW YORK – Fear drove Wall Street to one of its most dramatic, dizzying days in years on Wednesday.
Investors fled stocks and poured into bonds as worries about a global economic slowdown intensified. The Dow Jones industrial average dropped 460 points in afternoon trading, all three U.S. stock indexes were in negative territory for the year, and the so-called fear index spiked.
A late recovery limited the damage and left stocks mostly lower. But investors were shaken after the heaviest day of trading in more than three years.
“I think it’s fair to call it a global growth scare right now,” said Bill Stone, chief investment strategist at PNC Asset Management.
Investor concerns of a worldwide economic slowdown turned into outright fear after weeks of turbulence. Germany, Europe’s biggest economy, is struggling. China’s economy appears to be slowing. A batch of worrisome economic news in the U.S. also fueled the selling.