U.S. stock indexes fall as worries rise

Renewed pessimism about the strength of the global economy and corporate profits led to sharp losses.

Renewed pessimism about the strength of the global economy and corporate profits this year led to sharp losses on Wall Street Thursday.

Technology companies, health care stocks and banks accounted for much of the selling. Twitter slumped almost 10 percent after issuing a weak forecast. Traders sought safety in U.S. government bonds, sending yields lower.

The broad sell-off followed a slide in overseas markets after European officials slashed their forecast for economic growth this year in the 19 countries that use the euro and the Bank of England warned that the British economy is set for its weakest growth in a decade.

The moves are the latest flashpoints of worry as investors gird for predicted slowdowns in economies around the world, including the United States, and weaker corporate earnings growth.

Stocks bounced back this year after a dismal December, riding a wave of positive momentum after the Federal Reserve signaled it would be take a more patient approach to raising interest rates. Corporate earnings, which have mostly come in ahead of lowered expectations, also helped lift the market this month, carrying the S&P 500 index to a five-day winning streak that ended Wednesday.

“We’ve come so far so fast that people were just looking for a chance to be able to say, ‘Yeah, that’s it, I’m going to take some money off the table,” said Tom Martin, senior portfolio manager of Globalt Investments.

The S&P 500 fell 25.56 points, or 0.9 percent, to 2,706.05. The Dow Jones Industrial Average lost 220.77 points, or 0.9 percent, to 25,169.53.

The Dow was briefly down 389 points.

The Nasdaq composite slid 86.93 points, or 1.2 percent, to 7,288.35. The Russell 2000 index of smaller companies gave up 12.40 points, or 0.8 percent, to 1,505.63.

U.S. indexes took their cue early Thursday from major European markets, which tumbled after the European Union’s commission slashed its 2019 forecast for economic growth in the 19 countries that use the euro to 1.3 percent from an earlier forecast of 1.9 percent.

A weaker-than-expected report on industrial production in Germany also raised concerns.

In London, the Bank of England cut its forecast for growth this year to 1.2 percent from an earlier forecast of 1.7 percent. That would be its slowest growth since 2009.

The bank said it sees a one-infour chance of slipping into a recession this year.

RICHARD DREW — THE ASSOCIATED PRESS FILE Specialist Glenn Carell, center, and trader John Panin work on the floor of the New York Stock Exchange.