Wall Street Falls Hard

Also in the sector, shares of SLM Corp. (SLM Quote), commonly known as Sallie Mae, ended down 11.2% after the lender said it will sell $2.5 billion in common stock in order to buy out certain liabilities. SLM dropped $2.48 to $19.65.

Shares of Apple (AAPL Quote) hit a record $202.96 before ending down 38 cents, or 0.2%, to $198.57. The move came after the stock crossed the $200 level for the first time during the prior session.

Following the close, the company said it has a deal in place with News Corp. (NWS Quote) to offer movie rentals over the Internet through its iTunes digital media service.

Overseas markets were mixed. Hong Kong's Hang Seng slipped 1%, and Japan's Nikkei lost 0.6% overnight. Among European bourses, London's FTSE 100 tacked on 0.3%, and Germany's Xetra Dax rose 0.5%.