NEW YORK (CNNMoney) -- Turmoil returned to U.S. stock markets at Thursday's open as renewed concerns about the U.S. and global economies sent major indexes plunging and pushed gold to a new record high.
The Dow Jones industrial average (INDU) dropped 480 points, or 4.2%, after falling as much as 528 points. The S&P 500 (SPX) was down 54 points, or 4.5%; and the Nasdaq Composite (COMP) lost 126 points, or 5%.
All 30 members of the Dow were in the red, with Bank of America (BAC, Fortune 500) shares plunging 8%. Only three members of the S&P 500 were trading higher.
Investors had bad news hitting them from multiple fronts, including a dismal forecast from Morgan Stanley for global economic growth, and several economic reports that showed significant slowdown in the U.S. economy.
A gloomy report from Morgan Stanley renewed fears over a slowing global economic recovery. The investment bank slashed its global growth outlook for 2011 and 2012, adding that the United States and Europe are "hovering dangerously close to a recession."
Morgan Stanley cut GDP forecasts to 3.9% in 2011 and 3.8% in 2012, down from 4.2% and 4.5%, respectively. Growth will be particularly sluggish in developed nations, with GDP averaging an increase of 1.5%
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