US stocks ended their worst quarter since the depths of the 2008 credit crisis, crippled by Europe’s debt debacle, a US credit downgrade and a sputtering global economy.
A steep slide on Friday closed out a fifth month of losses as weak economic data from China sparked fears of a global economic slowdown while investment bank Morgan Stanley plummeted on concerns about its exposure to European banks.
The Dow Jones industrial average dropped 240.60 points, or 2.16 percent, to 10,913.38. The Standard & Poor’s 500 Index fell 28.98 points, or 2.50 percent, to 1,131.42. The Nasdaq Composite Index lost 65.36 points, or 2.63 percent, to 2,415.40.
European shares fell, posting their worst quarterly performance since 2008, wiping $1.2 trillion off their value, on worries global growth was stalling, with weak China manufacturing figures the latest data to suggest a slowdown.
The pan-European FTSEurofirst 300 index of top shares closed down 1.1 percent at 923.41 points and has lost 16.9 percent for the quarter, its worst since the end of 2008.
The Nikkei share average snapped a three-day gaining streak to close flat, posting its worst quarter in over a year, as pension fund buying faded and as weakness in other Asian stock markets weighed.
Also hit by weakness in other Asian stock markets, with Chinese shares racking up losses on fears of a property market correction, the Nikkei closed at 8700.29. It stumbled for the third time this month at its 25-day moving average, which currently lies at 8,729.56.
For the week, it closed up 1.6 percent but was down 2.8 percent and 11.4 percent for the month and the quarter respectively. It was its worst quarter since June 2010.
The broader Topix index closed 0.2 percent at 761.17, bringing its losses for the quarter to 10.4 percent.
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