NEW YORK (Reuters)-U. S.
Stocks plunged on Tuesday, the S & P 500 index entered a bear market, and European officials delayed important aid to debt --Greece was hit.
Wall Street fell about 2%, extending the previous day's decline to 13-
Investors worried the European crisis could plunge the United States into a new recession, so this month's lows.
Concerns about the European financial system have caused stock losses in the past few months.
With Tuesday's fall, the S & P index has fallen more than 20% from its intraday high hit in the morning to enter the bear market.
"There is no real reason at this point, there is no additional sales.
No one really understands what's going on in Europe, and before we get clearer, I doubt we'll see an interest in buying, "said Eric Green, senior portfolio manager and research director, Philadelphia-
Headquartered in Penn Capital Management, it oversees $6. 5 billion (4.
The Dow Jones industrial average. DJI slid 232. 19 or 2.
18%, at 10,423. 11.
S & P 500. SPX fell 22. 69 points, or 2.
06%, at 1,076. 54.
Nasdaq Composite Index. IXIC dropped 32. 30 points, or 1.
38%, at 2,303. 53. U. S.
The fragile financial situation in Europe continues to put pressure on banks.
Morgan Stanley (MS. N)fell 6.
$ 3% to $11.
This year fell by more than 56%.
To make the market more pessimistic, Goldman Sachs lowered its gdp forecast for developed economies by 2012, reducing its growth forecast to 1.
3% from 2. 1 percent.
"The main driver of our shift in view is the increased funding pressure from eurozone banks and deeper public budget cuts in some European countries, Goldman Sachs said in a report.
Stoxx Europe 600 bank index.
SX7P fell nearly 5% as European officials reviewed a plan to ask banks to take more losses on Greek debt and expect Greece to default soon. Franco-
Dexia Bank of Belgium (DEXI. BR)dropped 19.
At 2%, a record low, investors are concerned about Greece's debt exposure.
European stocks plunged. 1 percent.
European officials also postponed important aid to Athens to the medium term. November.
Late Tuesday, the United StatesS.
Federal Reserve Chairman Ben Bernanke will testify on the economic outlook at the Joint Economic Commission in Washington. Apple Inc (AAPL. O)
It will launch a new version of its popular iPhone, hoping to push it backCharge competitors
The stock is slightly 0.
7% fell to $372.
Ford Motor Co (F. N)fell 2. $ 6% to $9.
After a preliminary agreement with the union of joint auto workers on a new contract.