Dow slumps to worst August since 2001

The Dow Jones Industrial Average ended the month down 4.3%, the worst since May, and first down August for the index in five years, the Wall Street Journal reports. It was worse for the broader Standard & Poor's 500, which fell 4.7%. The tech-heavy Nasdaq shed 6.2%. In what paints a gloomy picture for the US economy, the Russell 2000 small-cap index recorded its worst August in 12 years, down 7.5%. The Dow had climbed 7.1% in July, but retreated in August on fears over a double dip recession and on deflation. August is traditionally a good month for equities, while September has be...