Week ending March 2: Stocks plunge on global macroeconomic risks.
Markets experienced their biggest slide in recent years last week as investors became more attuned to global macroeconomic risks. The Morningstar US Market Index was down 4.5% for the week ending March 2. The main damage was done Feb. 27, when Chinese authorities announced steps to curb stock market speculation, causing that market to plummet. Investors remained downbeat through the week due to more bad news about the U.S. subprime mortgage lending market and the prospect that rising interest rates in Japan would shut off a cheap source of funds.
All nine Morningstar style indexes finished deep in the red. The Morningstar Mid Value Index held up best with its 3.7% loss, and the Morningstar Small Growth Index's 6.7% decline was the steepest.
Morningstar Small Growth Index components Immucor