Bears Take Another Day on Wall Street

Updated from 2:43 p.m. EST

Hit hard by economic worries and concern over the stumbling automotive sector, stocks on Wall Street closed with heavy losses Tuesday.

The Dow Jones Industrial Average, lost 176.58 points, or 2%, at 8693.96. The S&P 500 fell 20.26 points, or 2.2%, to 898.95. The Nasdaq gave back 35.84 points, or 2.2%, to 1580.90.

An afternoon rally accompanied an announcement by the Federal Housing Finance Agency that it would work to refinance mortgages tied to government-sponsored entities Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote), but buying enthusiasm faded before the major averages could reach positive territory. ...