U.S. markets fall Thursday

U.S. markets fall Thursday

May 21, 2009 (United Press International) -- U.S. markets dropped sharply Thursday after the Federal Reserve lowered its expectations for economic growth.

The Open Market Committee's April 28-29 meeting minutes said the U.S. gross domestic product could shrink 2 percent in 2009. Previously, the Fed forecast a fall of 1.3 percent.

The stock markets in London were rattled when credit-rating company Standard & Poor's (NYSE:MHP) said Britain's triple A rating was threatened by its rising debt.

By close, the Dow Jones industrial average dropped 129.91 points, or 1.54 percent, to 8,292.13. The Standard & Poor's 500 fell 15.14, or 1.68 percent, to 888.33. The Nasdaq composite index lost 32.59, or 1.89 percent, to 1,6958.25.

On the New York Stock Exchange, 809 stocks advanced and 2,213 declined on a volume of 7.2 billion shares traded.

The benchmark 10-year U.S. Treasury bond fell 13/32 to yield 3.379 percent.

The euro fell to $1.3899, compared to Wednesday's $1.3905. Against the Japanese yen, the dollar rose to 94.38 yen, compared to Wednesday's 94.30 yen.

In Tokyo, the Nikkei average lost 80.49 points to 9,264.15, off 0.86 percent.

In London, the FTSE index dropped 2.75 percent, 122.94, to 4,345.47 points.