Stock Markets Close Nearly 400 Points Down

Thursday's stocks have closed at 10,733.83, 391.01 points lower than the day started leaving investors to believe the United States and the world are headed for a new recession.

This is the second day the market has not closed favorably. At one point, the Dow Jones Industrial Average plunged 527 points after the Federal Reserve made negative comments about the economy, sparking a broad sell-off. Investors looking for a safe haven to put their money bought government debt, which was seen as less risky than stocks.

The economic bad news isn't just in America. A survey in Europe indicates a recession may be on the way there and another survey in China indicated there could be a manufacturing slowdown. Recently, China has been one of the hottest economies.

The Head of the International Monetary Fund Christine Lagarde said the world economy was "entering a dangerous phase." Several financial indicators, like the Dow falling more than 15 percent in two months, show that investors are losing hope that the economy can keep growing.

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