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[novapsyche]

Stocks Dive on New Signs of Economic Chill

The Dow Jones industrials plunged 315 points, and every major index shed more than 2.5 percent. The Standard & Poor's 500-stock index is off to its worst start to a year since 1941.

The market was poised for a poor opening after American International Group, the world's largest insurer, posted the worst quarterly loss in company history Thursday night. The Dow was off 100 points shortly after the opening bell.

Income growth slowed in January and consumer spending was flat when adjusted for inflation, the Commerce Department said. For the first time in at least 50 years, Americans spent more than they earned for the third consecutive month.