US mkts crash on recession concerns; S&P ends below 800 and Asian trading weak; Shanghai Composite down 2%.

US markets tumbled to a three-month low, extending a global slump, as a record contraction in New York manufacturing spurred concern that the government's stimulus package won't be enough to curb the deepening recession.

New York federal reserve reported its empire State Manufacturing Index which fell to a record minus-34.6 from minus-22.2 in January. Economists had expected a much milder decline of minus-24. New orders fell to an all-time low.

The Dow Jones Industrial Average closed at 7,552.60, down 297.81 points, or 3.79%. The Nasdaq composite index fell 63.70 points, or 4.15%, to close at 1,470.66.

Gold jumped to more than 975 dollars an ounce, the highest price since July, on speculation that low interest rates and government spending will devalue currencies, boosting the appeal of precious metals as a store of value. silver and platinum also rose.