Dow drops 500 points on fears of another recession

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NEW YORK (AP) -- The Dow Jones industrial average has plunged more than 500 points as investors sell stocks with abandon. Financial markets in the United States and around the globe are down sharply on fears of a recession.

At 3:24 p.m. Eastern time, the Dow is down 522, or 4.7 percent, at 10,601, a low for the year.

One financial indicator after another shows that investors are losing hope that the economy can keep growing. Thursday's plunge comes a day after the Federal Reserve announced a change in strategy for fighting the economic slowdown.

Economic news was bad around the world. A closely watched survey in Europe indicated a recession could be on the way there, and a manufacturing survey suggested a slowdown in China, which has been one of the hottest economies.