Stampede to the Exits

A computer glitch reportedly caused the giant 3 p.m. drop in the Dow, but the selling pressure was massive across all sectors of the market regardless. All 30 Dow stocks were in the red, as were a whopping 497 of the S&P 500. The NYSE saw 98% of stocks in retreat, as more than 4 billion shares changed hands. Declining stocks outpaced advancing ones by 7 to 1 on the NYSE, and 14 to 1 on the Nasdaq, where 3.1 billion shares changed hands. The so-called fear index, or CBOE Volatility Index, jumped 64%.

In exchange-traded funds, the selling and the shorting was fast and furious. The S&P 500 ETF, the SPDR Trust(SPY Quote), declined 3.9% on four times its average volume. The volume on the Nasdaq 100 Unit Trust(QQQQ Quote) was nearly three times average amid a 4.1% decline.

The worst performers on the Dow included drops of 5% or more in General Motors(GM Quote) and Disney(DIS Quote), and more than 4% drops in Exxon Mobil(XOM Quote), Microsoft(MSFT Quote), Procter & Gamble(PG Quote) and Verizon(VZ Quote).