Futures Freeze as Stock Markets Plunge Despite Oil Prices Drop

Wall Street was poised to plummet at the opening bell on Friday, after U.S. stock index futures dove so steeply that they had to be frozen at several points as global markets were battered by signs the global economy is in the throes of recession.

The current futures limits are as follows:

S&P 500 Futures: -60

Dow Jones Futures: -550

Nasdaq Futures: -85

They can drop no further until the market opens. These numbers are set quarterly, based on a 5% loss of the markets' values -- not current values, but the values when they were set. Then, these rules go into effect:

The Dow Jones Industrial Average fell 5% in the first minutes of trading, while the hi-tech Nasdaq index plunged as much as 6% at one point.

On European markets, London was down 6% in afternoon trading, Frankfurt fell 8% and Paris was 6% lower.

On currency markets, the pound fell to $1.52 at one point, the lowest level in six years, on expectations of further UK rate cuts.

Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plummet 11%.

Output fell by 0.5%, according to the Office for National Statistics, a bigger-than-expected drop, knocking UK shares and weakening the pound.

The UK will be classed as being in recession if the economy slows in the fourth quarter as well.

OPEC decided to lower supply by 1.5 million barrels a day from November, oil ministers said today at the end of a meeting at the group's Vienna's headquarters. The reduction will be from the existing quota for 11 members of 28.8 million barrels a day.

The decision to cut about 5% of the cartel's total daily output came after an emergency Opec meeting in Vienna.

Stocks followed the lead of plunging markets worldwide, with Japan's Nikkei index ending down 9.6%. European markets down almost as sharply, with major indexes down 8% in France and Germany and 7% in London.

Markets were down 14% in Moscow when the exchange there suspended trading until Tuesday.

"Today might be the day where everybody throws in the towel," said Peter Cardillo, chief market economist for Avalon Partners. "People are saying 'I've had it, I can't take it anymore, I'm selling everything.'"