Stocks tumble on fears about Dubai debt fallout

NEW YORK (AP) -- Stocks tumbled Friday as fear swept world markets that financial trouble in the Middle Eastern city-state of Dubai will upend a global economic recovery.

Major stock indexes fell about 2 percent from 13-month highs, including the Dow Jones industrial average, which slid 200 points in the first minutes of a shortened trading day.

Trading volume had been expected to be light after the Thanksgiving holiday. Light volume can trigger big swings in markets. Stock markets close three hours early, at 1 p.m. EST. Bond markets close at 2 p.m.

Investors' broad retreat from riskier assets pushed Treasury prices up sharply. The dollar gained against most other major currencies as investors sought safety following steep drops in overseas markets. Commodities prices tumbled.

Investors are worried that a default by a government investment company in Dubai over $60 billion in debt payments could have a ripple effect in world financial markets. The fear is that losses in the small emirate, which has drawn wealthy tourists from around the globe in the past decade with its Las Vegas-in-the-Middle East appeal, could imperil a nascent economic rebound.