The World Bank's bleak forecast for the world economy has dragged stocks to their biggest loss in two months. Almost all the major stock indices tumbled.

The Dow Jones industrial average dropped 200 points, or 2.4 per cent. The Standard & Poor's 500 fell 28 points, or 3 percent, and the Nasdaq fell 61 points, or 3.4 percent. After depressing outlook by the World Bank, declining commodity prices led by oil added to nervousness of the investors.

Many big shots like Bank of America Corp. dropped 9.7 percent to $11.94, Freeport-McMoRan, the world's largest publicly traded copper producer, plunged 11 percent to $45.18 for the biggest decline since March. Alcoa Inc. dropped at least 8.9 percent, while BP Plc and Occidental Petroleum Corp. lost more than 3.8 percent.

John Wilson, who helps oversee $120 billion as chief market technician at Morgan Keegan & Co. in Memphis, Tennessee, said, "The worries are still out there. Nobody is ready to get the trumpets out and herald the end of the recession."

The World Bank's bleak statement that coming times would notice increase in unemployment and poverty and that this year global economy would contract by 2.9 percent, also added to the nervousness of the investors.

Apple dropped even after claiming that it sold more than 1 million iPhone 3G S units in the device's opening weekend.

Exxon Mobil Corp. lost 3.1 percent to $68.84, largest in the last three months. Europe's second-largest oil company, BP, lost 3.8 percent to 478 pence in London. On concerns that fuel demand will remain bleak in the recent future, crude oil also witnessed a drop for a 2nd consecutive day in New York, down 3.8 percent to $66.93.

On the other hand, because rising interest rates, mortgage originations in the U. S. may total $2.03 trillion this year, which would be 27 percent less than earlier forecast.

Treasury prices and yields moved in opposite directions. Bonds soared. The yield on the 10-year bond fell to 3.693 percent from 3.789 percent.