Stocks fall as Dow slips into bear market

The Dow Jones Industrial Average became the last of the major U.S. stock indexes to fall into what’s known as a bear market Monday as the market deepened its slump amid growing fears of a global recession.

The British pound dropped to an all-time low against the dollar and investors continued to dump British government bonds in displeasure over a sweeping tax cut plan announced in London last week.

In the U.S., stock indexes have been losing ground, coming off their fifth weekly loss in six weeks.

“We’re starting to have a handoff from fears about inflation and the Fed to global economic worries,” said Mark Hackett, chief of investment research at Nationwide. “We’ve reached a universal degree of pessimism.”

The Fed raised its benchmark rate, which affects many consumer and business loans, again last week and it now sits at a range of 3% to 3.25%.