Dow Sinks 411 Points as Investor Nerves Fray

Updated from 3:29 p.m. EST

Stocks in the U.S. got walloped Wednesday, closing with discouraging losses after Treasury Secretary Henry Paulson proposed new ways to spend the Troubled Asset Relief Program's remaining funds, retailers offered cringe-worthy sales forecasts and Congress looked at a potential bailout for the sickly auto sector.

The Dow Jones Industrial Average lost 411.30 points, or 4.7%, to 8331.24, and the S&P 500 gave back 46.65 points, or 5.2%, to 852.30. The Nasdaq slid 81.69 points, or 5.2%, to 1499.21.

The status of programs to quell turmoil in the financial space was occupying investor attention. The Wall Street Journal reported ahead of Wednesday's session that the Treasury may begin to require companies to raise private money before gaining access to the $700 billion Troubled Asset Relief Program. ...