Wall Street Sinks, Dow Closes Well Below 9000

Updated from 4:06 p.m. EDT

A storm of fear and dread hit stocks in New York Thursday, as tight credit markets and pessimism regarding the financial sector walloped the major indices and sent the Dow Jones Industrial Average below the 9000 mark for the first time in five years.

The bears emerged in force at the final hour of trading. The Dow, which earlier had risen as much as 190 points, ended down 678.91 points, or 7.3%, at 8579.19. The S&P 500 sank 75.02, or 7.6%, to 909.92, and the Nasdaq lost 95.21 points, or 5.5%, at 1645.12.

October has proved a brutal month thus far for the market. The Dow has been down every day since the start of the month, losing some 2,000 points in that short time. It was just one year ago to the day that the Dow closed at an all-time record high of 14,164. The last time the index traded below 9000 was on Aug. 6, 2003. ...