Stocks swoon, extending losses

U.S. stocks tumbled in midday trading today as investor fears of a global economic slowdown intensified, setting the Dow Jones industrial average on course for its fourth consecutive loss.

The Dow plunged as much as 450 points shortly before 1:30 p.m., following steep declines in Europe, as the market sized up the latest batch of corporate earnings and some discouraging data on retail sales and manufacturing.

Traders dumped risky assets and parked their money in investments seen as relatively safe, such as U.S. government bonds. That pushed the yield on the 10-year Treasury note briefly below 2 percent, the lowest level in more than a year.

"It's a function of the U.S. being the best house in a bad neighborhood," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "There's still uncertainty about economic growth, primarily on a global basis."