U.S. markets slide Thursday

U.S. markets slide 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.

In early afternoon trading, the Dow Jones industrial average dropped 157.78 points, or 1.87 percent, to 8,264.26. The Standard & Poor's 500 fell 17.79, or 1.97 percent, to 885.68. The Nasdaq composite index lost 38.94, or 2.25 percent, to 1,688.90.

The benchmark 10-year U.S. Treasury bond fell 31/32 to yield 3.31 percent.

The euro rose to $1.3880, compared to Wednesday's $1.3768. Against the Japanese yen, the dollar fell to 94.51 yen, compared to Wednesday's 94.74 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.