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Stocks slid into the close on Thursday after Federal Reserve chairman Ben Bernanke dashed expectations that he would deliver new options for getting the economic recovery back on track.

The Dow Jones industrial average closed at 11,295.81, down 119.05 points or 1 per cent. The broader S&P 500 closed at 1185.90, down 12.72 points or 1.1 per cent. In Canada, the S&P/TSX composite index closed at 12,683.96, down 36.60 points or 0.3 per cent.

Markets were relatively steady in early afternoon trading, before Mr. Bernanke delivered his prepared remarks. He acknowledged that the economic recovery is weaker than anticipated and said that the Fed has the tools to stimulate the economy. However, he disappointed investors with his refusal to offer anything more specific.

U.S. financials were the biggest drags on performers, just a day after they led the biggest rally in two weeks on renewed optimism over the global economy. Bank of America Corp. and JPMorgan Chase & Co. fell about 3.7 per cent each. Canadian financials were also weak, with Royal Bank of Canada down 0.3 per cent and Toronto-Dominion Bank down 1.7 per cent.

Other big declines were heavily tilted toward economically sensitive stocks, with Boeing Co. down 3.2 per cent and DuPont down 2.2 per cent.

Defensive stocks held up reasonably well, though. Kraft Foods Inc. rose 0.8 per cent and Coca-Cola Co. rose 0.5 per cent.

Gold surged to $1857.50 (U.S.) an ounce, up $39.90. That helped gold producers like Barrick Gold Corp., which rose 1.7 per cent. Crude oil retreated slightly to $89.05 a barrel, down 29 cents. However, Suncor Energy Inc. and Canadian Natural Resources Ltd. rose 0.2 per cent each.

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