US stocks fall sharply on consumer spending worries

Confirmation that the US is in a recession and signs pointing to a prolonged downturn sent Wall Street plunging once again today, hurtling the Dow Jones industrials down nearly 700 points and more than half of last week’s big gains. All the major indicators more than 7%, and the Standard & Poor’s 500 index dropped nearly 9%.

The market began the day sliding on initial reports that the holiday shopping season, while better than some retailers and analysts feared, was mixed, a sign that Americans are very reluctant to spend. That has Wall Street concerned about the impact of a continuing drop in consumer spending on the sagging economy.