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Dow sinks 1,800 points, oil tumbles on global recession fears

U.S. stocks and bond yields tumbled Monday, extending a global rout after a sharp drop in crude prices intensified concerns about a global recession.

The Dow Jones industrial average tumbled 1,800 points while the Standard & Poor’s 500 sank 7%. The technology-heavy Nasdaq Composite dropped 7%. Contracts hit a 7% daily down limit shortly after the opening bell, triggering a halt in trading for 15 minutes.

The New York Fed Monday said it will step up its cash injections into the financial system to prevent the kind of cash shortages that pushed up the central bank’s key short-term interest rate above its target range last fall. Over the next few days, the Fed will increase one kind of loan from $100 billion to $150 billion and another from $20 billion to at least $45 billion.

While the loans largely have represented technical adjustments and are scheduled to be phased out this spring, Barclays said in a research note that this move likely “is driven more by deteriorating market sentiment and recession risks.”

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