New York - US stocks posted some of their worst losses in two months amid falling commodity prices and fresh concerns that a global recession is deepening.

The World Bank cut its global growth forecasts, warning that most developing countries that were once considered insulated from the financial crisis will slip into recession this year.

The world economy will contract 2.9 per cent in 2009. Developing countries together will grow 1.2 per, compared to 5.9-per-cent growth in 2008. Excluding China and India, which have held up relatively well in the crisis, developing economies will see their combined gross domestic products shrink by 1.6 per cent in 2009.

The Dow Jones Industrial Average and the Standard and Poor's 500 Index both suffered their steepest one-day drops since April. European markets booked heavy losses, with the Euro Stoxx 50 falling 3.1 per cent.

The price of crude oil fell 3.8 per cent to 66.93 dollars per barrel in New York, leading energy listings lower. Metals producers fell sharply on the day.

The blue-chip Dow Jones Industrial Average tumbled 200.72 points, or 2.35 per cent, to 8,339.01. The broader Standard and Poor's 500 plummeted 28.19 points, or 3.06 per cent, to 893.04. The technology- heavy Nasdaq Composite Index plunged 61.28 points, or 3.06 per cent, to 1,766.19.

The US currency rose against the euro to 72.13 euro cents from 71.65 euro cents on Friday. The dollar fell against the Japanese currency to 95.84 yen from 96.25 yen on Friday.(dpa)