U.S. stock market pummeled by credit issues overseas

“Manufacturing orders in Germany were much weaker than expected, and that has shaken the market up, so it’s not just the fiscal situation with Club Mediterranean countries in the Euro zone,” said John Brady, senior vice president in the interest-rate products group at MF Global.

Investors already worried about the large deficits in countries including Portugal, Italy, Spain and Greece are now worried that “global economies may not see the V-shape recovery that we have witnessed in the global equity markets,” Brady said.

The Dow Jones Industrial Average was lately off 228.99 points, or 2.2%, at 10,041.56, with aluminum giant Alcoa Inc. /quotes/comstock/13*!aa/quotes/nls/aa (AA 12.91, -0.58, -4.30%) weighing the most on the blue chips, late off 4%.

Bummer.