Global Recession Fears Shake Stock Market

Updated from 1:45 p.m. EDT

Stocks on Wall Street were rallying from heavy losses but were still mired in negativity Friday afternoon, as forced liquidations continued and fear of a global economic slowdown intensified.

The Dow Jones Industrial Average, off more than 500 points earlier, lately was down 187 points at 8504, and the S&P 500 gave back 21 points to 887. The Nasdaq tumbled 28 points to 1576.

The selling mood was tied to belief in an impending global recession. Larry Adam, chief investment strategist at Deutsche Bank Private Wealth Management, wrote in a research note that he expects 2009 global growth to register at 1.2%, a rate that falls well below the International Monetary Fund's recession benchmark of 3%. He predicted negative growth for the U.S. and Europe in the coming year. "[T]he present environment remains fluid and unprecedented," Adam wrote. ...