Stock prices plunged on U.S. and European exchanges Thursday, as the DAX index in Germany fell almost 7 percent at one point, and the U.S. benchmark Dow index was off more than 4 percent. Losses on both exchanges eased somewhat in later trading.

The sell-off followed forecasts of lower economic growth and continuing worries about the European debt crisis. Thursday also saw reports showing rising inflation and layoffs coupled with falling home sales in the United States.

Oil prices fell because investors expect lower economic growth will cut the demand and price for energy.

Another reflection of investor concern is shown by the price of gold, which hit new record highs. Gold is traditionally seen as a safe haven for investor's money in troubled times.