The Dow Jones industrial average fell 5.7 percent on worries about corporate profits and the global economy.
NEW YORK — Wall Street tumbled again Wednesday as investors worried that the global economy is poised to weaken even as parts of the credit market slowly show signs of recovery.
The Dow fell 514.45, or 5.7 percent, to 8,519.21, after being down as much as 698 points in the final half-hour of trading. Still, the Dow finished above its Oct. 10 closing low of 8,451.
Broader stock indicators also fell Wednesday. The Standard & Poor’s 500 index lost 58.27, or 6.1 percent, to 896.78, its lowest close since it finished at 892 on April 21, 2003. The Nasdaq composite index fell 80.93, or 4.8 percent, to 1,615.75.
Corporate profit forecasts, a jump in the dollar and falling oil prices signaled investors are fearful that an economic slowdown will sweep the globe even if lending begins to approach more normal levels.
Most Read Business Stories
- Amazon sued by Black cloud-computing manager over alleged racial discrimination and sexual harassment
- The penthouse atop Smith Tower is on the rental market for the first time
- 6 Dr. Seuss books won't be published for racist images
- Frontier cancels flight, citing maskless passengers
- Costco, Whole Foods rise in Greenpeace rankings of grocery chains' plastic use
The dollar hit multiyear highs against several other major currencies, weighing on commodity prices.
John Thornton, co-portfolio manager at Stephens Investment, said investors’ fear has shifted from the immediate concerns about tightness in credit to the broader economy as companies come out with their quarterly numbers.
“Even if it weren’t for the credit crisis we’d probably be looking toward a pretty tough recession anyway,” Thornton said. “The third-quarter earnings are kind of uninspiring but third quarter hasn’t been the real concern of people. I think the concern is the depth and duration of the downturn and the effect it’s going to have on earnings.”