Bear Market Engulfs Dow Transports, Russell 2000 Loses 25%

Declines in smaller companies and transportation stocks yesterday brought losses since their 2011 peaks to more than 20 percent, signs that investors anticipate another U.S. recession.

The Russell 2000 Index plunged 8.9 percent yesterday, the biggest drop since December 2008, bringing its decrease since April 29 to 25 percent. The losses were led yesterday by MGIC Investment Corp. and General Maritime Corp., which slid more than 39 percent. The Dow Jones Transportation Average slipped 7 percent, marking a 22 percent retreat from its high on July 7, as Con-Way Inc. and Ryder System Inc. slumped 12 percent.