NEW YORK (AP) - U.S. stocks plunged Friday as a wave of fear swept through world markets over concerns that financial trouble in the Middle Eastern city-state of Dubai will upend a global economic recovery.
Investors are worried that a default by a government investment company in Dubai on 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.
Worries about bad debt are fresh in investors' minds after the collapse of the U.S. brokerage Lehman Brothers in September last year pushed the world overnight deeper into recession as banks halted lending on fears of a domino effect of bad loans.
U.S. markets were closed Thursday for Thanksgiving.
AP
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