Bloomberg reports that a global rout in equities drove the Standard & Poor’s 500 Index to its worst slump since February 2009, while two-year Treasury yields plunged to a record low amid concern the economy is weakening.

The Bloomberg article noted that the S&P 500 tumbled 4.8% to 1,200.07 at 4 p.m. (August 4, 2011) in New York, a 12% drop from its April 29 peak and weakest level since November 2010.

Concern the global economy may relapse into a recession has driven investors out of stocks and into the relative safety of Treasuries, the Swiss franc and yen and is spurring speculation the Federal Reserve will start another stimulus program, according to the report.

Bloomberg quoted Mike Ryan, the New York-based chief investment strategist at UBS Wealth Management Americas, as saying: “The mood right now is gloomy.” Ryan added, “The burden of proof is for better data that show the economy is not falling into recession. Tomorrow’s payroll report is crucial. If we see another disappointment, the stock market will have significant downside from here.” His firm oversees $774 billion, according to Bloomberg.

To read the full Bloomberg article click here.