Stocks continued to look weak in midday trading on Monday in a broad selloff that left few names untouched.
At noon, the Dow Jones industrial average was down 279 points or 2.4 per cent, to 11,166. The broader S&P 500 was down 36 points or 3 per cent, to 1163.
Investors reacted to Friday's downgrade of the U.S. credit rating by Standard & Poor's, though fears of an oncoming recession and uncertainty over the latest flareup in the European debt crisis might be playing a bigger role, given that U.S. government bond prices have surged.
All 10 subindexes within the S&P 500 were down, with economically sensitve stocks taking the biggest beating. Financials fell 4.6 per cent, energy stocks fell 3.7 per cent and consumer discretionary stocks felll 3.6 per cent.
Defensive stocks also fell, but the losses were somewhat lighter. Consumer staples fell 1.3 per cent, telecom services fell 2.4 per cent and health care stocks fell 2.5 per cent.
In Canada, the S&P/TSX composite index was down 266 points or 2.2 per cent, to 11,896.
Gold producers were winners, which helped drive materials up 1.2 per cent. However, energy stocks slumped 4.4 per cent, utilities fell 3.6 per cent and financials fell 2.8 per cent.