In a dramatic reversal, the blue-chip

Dow Jones Industrial Average

recovered almost all of its losses, ending only modestly lower. But the rest of the market was badly bruised again.

The Dow had fallen as much as 274 points during the session.

J.P. Morgan's

(JPM) - Get Report

astonishing reversal in roughly the last half-hour of trading was responsible for a lot of the Dow's recovery.

The Dow ended down 9.78, or 0.1%, to 7731.91. The

S&P 500

fell 11.21, or 1.2%, to 959.47. The

Nasdaq Composite Index

surrendered 43.49, or 3%, to 1419.12, while the small-cap

Russell 2000

dropped 11.95, or 3.7%, to 310.28.

Meanwhile, Treasuries on the long end suffered huge losses. The 30-year Treasury bond was down lately 1 31/32 to 107 30/32, yielding 4.985%.

On the

New York Stock Exchange

, 2,673 decliners led 586 advancers on 1.12 billion shares.

Nasdaq Stock Market

losers beat winners 3,657 to 844 on 1.21 billion shares. The day's volume was the third-highest ever for each exchange.

On the NYSE, 928 issues hit new 52-week lows while 40 hit new highs. On the Nasdaq, a breathtaking 1,556 issues were at new lows while only

Connecticut Water Service

(CTWS) - Get Report

and

Kirin Brewery

(KNBWY)

with 26.2 million shares changing hands, followed closely by

Citigroup

(CCI) - Get Report

, formed by the merger between

Travelers

and

Citicorp

, which made its trading debut today. Compaq was down 7/8 to 24 1/16, while Citigroup ended with a gain of 5/8 to 32 3/8 after trading as low as 28 1/2.

On the Nasdaq, as is usual,

Dell

(DELL) - Get Report

was most active with a stunning 102.6 million shares changing hands. Dell fell 2 3/16 to 48 7/16.

Market data above are preliminary. Updated numbers and analysis will follow in the Market Roundup

.

2:59 p.m.: Indices Bounce Off Lows but Remain Heavily Pressured

The stock market continued off its session lows as the market hobbles into the final hour of trading.

The

Dow Jones Industrial Average

was down 146 to 7596. The

S&P 500

was down 25 to 946, while the

Nasdaq Composite Index

was down 68 to 1394 and the

Russell 2000

was down 17 to 306.

The small-cap Russell 2000, the tech-heavy Nasdaq Composite and the

Dow Jones Transportation Average

have all at some point today set new 52-week intraday lows.

The Dow today has traded below the Aug. 31 close of 7539.07, the day the blue-chip index collapsed 512.61.

Meanwhile, in the Treasury market, dollar woes continued to weigh on the market. The 30-year bond was lately down 1 31/32 to 107 30/32, yielding 4.99%.

Wall Street has sold off today for a host of reasons. Fears of recession, a decimated dollar, piggy-backing on a selloff overseas and a glum prediction for the Dow by one of the market's most prominent technical analysts have all shared some of the blame.

Market internals were sick. On the

New York Stock Exchange

, 2,900 decliners were leading 356 advancers on 865 million shares.

Nasdaq Stock Market

losers were beating winners 3,898 to 552 on 928 million shares.

On the NYSE, 889 issues were at new 52-week lows while 34 were at new highs. On the Nasdaq, a whopping 1,451 issues were at new lows while

Connecticut Water Service

(CTWS) - Get Report

and

Kirin Brewery

(KNBWY)

was one of the most active stocks on the Big Board, with nearly 16.1 million shares changing hands. The stock has fallen sharply in its first day of trading as Citigroup, off 2 5/8, or 8.3%, to 29 3/16.

On the Nasdaq, technology heavyweights are getting beaten up badly. Volume leader on the Nasdaq is

Dell

(DELL) - Get Report

on 70.7 million shares, followed by

Cisco

(CSCO) - Get Report

,

Microsoft

(MSFT) - Get Report

and

Intel

(INTC) - Get Report

.

Dell was down 6 9/16, or 13%, to 44; Microsoft was off 5 9/16, or 5.9%, to 88 1/2; Intel was down 1 13/16 to 77 5/16; and Cisco was only off 5/8 to 43 5/16. Cisco, however, has been pummeled this week.

Sector Focus: Multinationals

Thanks in large part to the sliced-up dollar, some of the big multinationals have turned in relatively strong performances considering the wide array of losing shares in the market.

McDonald's

(MCD) - Get Report

was up 1/4 to 61 5/16;

Proctor & Gamble

(PG) - Get Report

was off a touch, down 3/16 to 77 3/16; and

Coca-Cola

(KO) - Get Report

was up 11/16 to 64 1/8.

12:59 p.m.: Midday Musings: Exits Getting Crowded as Investors Sprint From Stocks

12:15 p.m.: Stock Plummet Accelerates on Array of Concerns

The stock market selloff intensified late this morning apparently on a downside prediction by one of the market's most closely watched seers and on news that a firm is planning to liquidate a major position in

S&P 500

options.

The

Dow Jones Industrial Average

was down 210 to 7531. The

S&P 500

was down 34 to 936, while the

Nasdaq Composite Index

was down 92 to 1308. The

Russell 2000

was down 16 to 306.

The 30-year Treasury bond was down 1 18/32 to 108 11/32, its yield rising to 4.96%.

Ralph Acampora

, director of technical research at

Prudential Securities

, reportedly lowered his target on the Dow to 6735 today, with a trading range set between 6500 to 7000. And Prudential market strategist Greg Smith reportedly reduced his recommended stock allocation and boosted his cash allocation. The Prudential moves combine with a reduction in S&P 500 earnings estimates by

Abby Joseph Cohen

of

Goldman Sachs

.

Perhaps more immediately important, options trading firm

BNP Cooper Neff

was prepared to liquidate at 11:30 a.m. EDT a position of 40,000 to 50,000 S&P 500 options on the

Chicago Board Options Exchange

, and shutter its operations. The package included mostly short index puts.

TheStreet.com

reported on the coming liquidation in a

story posted at 11:12 a.m. The December contract lately was down 35.00 to 944.00.

On the

New York Stock Exchange

, 2,777 decliners were leading 308 advancers on 481 million shares.

Nasdaq Stock Market

losers were beating winners 3,443 to 511 on 527 million shares.

On the NYSE, 712 issues were at new 52-week lows while 24 were at new highs. On the Nasdaq, 1,084 issues were at new lows while only

Connecticut Water Service

(CTWS) - Get Report

and

Kirin Brewery

(KNBWY)

,

American Airlines

parent

AMR

(AMR)

,

US Airways

(U) - Get Report

,

America West

(AWA)

,

Northwest Airlines

(NWAC)

,

Southwest Airlines

(LUV) - Get Report

and

Alaska Air Group

(ALK) - Get Report

.

On the earnings front,

General Electric

(GE) - Get Report

, which made Street estimates when it reported third-quarter earnings, has fallen nevertheless 4 7/8, or 6.5%, to 70 3/16.

Tech Focus

Among the technology indices today, the

Morgan Stanley High-Tech 35

index was down 6.6%, the

Philadelphia Stock Exchange Semiconductor Index

was down 3.5% and the

American Stock Exchange Inter@ctive Week Internet Index

was down 6.7%.

Yahoo!'s

(YHOO)

positive earnings surprise after the close yesterday hasn't helped it one bit. The Internet giant was off 14, or 12.2%, to 100 3/8.

Other tech favorites were suffering again today.

Dell

(DELL) - Get Report

was off 8 3/16, or 16.2%, to 42 3/8 and

Microsoft

(MSFT) - Get Report

was down 6 1/16, or 6.4%, to 88 3/16.

Microsoft has been prominent in the news today.

The Washington Post

reported if the

Justice Department

wins its antitrust suit against the software giant, it may ask a federal judge to impose sanctions on the company extending beyond previously requested steps regarding Internet browsing software. Meanwhile, in

The New York Times

, the headline on a sizable story about Microsoft reads: "How Software's Giant Played Hardball Game."

CNBC's

Chris Matthews

would be proud.

11:02 a.m.: Selloff Continues with Nasdaq, Russell Hit Hardest

The

Dow Jones Industrial Average

has recovered a good chunk of the losses it suffered early on, but that's probably cold comfort considering there are only 30 stocks in the index.

The rest of the market's major gauges, meanwhile, are getting crushed.

The Dow was down 98 to 7644. The

S&P 500

was down 22 to 949, while the

Nasdaq Composite Index

was down 53 to 1410 and the small-cap

Russell 2000

was down 10 to 312.

Meanwhile, the dollar's recent drop has pounded the 30-year Treasury bond, while shorter-dated Treasuries continue to trade up modestly. The long bond was recently down 18/32 to 109 11/32, yielding 4.90%.

Stocks plunged out of the gate on skittishness over the crushing losses in the dollar and in sympathy with big losses overseas. The dollar lately was off 2.50 to 118.83 yen, after yesterday posting its biggest loss vs. the yen in 25 years.

The sharp drop this morning led the Nasdaq, the Russell and the

Dow Jones Transportation Average

to pierce new 52-week lows. Those gauges, however, are now off those lows. The Dow transportation average was recently off 4.4%, led down by weakness in airline stocks.

The Dow had fallen as low as 7587.99 today after closing yesterday at 7741.69.

"This is nothing new," said Peter Coolidge, managing director of equity trading,

Brean Murray Foster Securities

of the market's slide, adding later, "It's a continuation of the same ugliness we've seen."

The dollar's slide is probably a good thing in some respects for stocks, but not when the drop is as sharp as it has been yesterday and today -- that's unnerving to the market, he said.

Fear of recession is also weighing on the market, said Coolidge. There's a lot of nervousness and "a lot of investors are heading for the exits," he said.

Meanwhile, it's an inauspicious start for Dow component

Citigroup

(CCI) - Get Report

, which started trading today. Citigroup, born from the merger of

Travelers

and

Citicorp

, said this morning third-quarter profits will drop to $700 million compliments of trading losses in emerging markets. Citigroup was down 1 5/8 to 30 1/8, up from a low of 28 7/8.

Market breadth was decidedly on the downside. On the

New York Stock Exchange

, 2,486 decliners were leading 364 advancers on 286 million shares.

Nasdaq Stock Market

losers were beating winners 2,910 to 579 on 334 million shares.

On the NYSE, 546 issues were at new 52-week lows while 19 were at new highs. On the Nasdaq, 833 issues were at new lows while just 1 was at a new high.

The decimated dollar has benefited

Coca-Cola

(KO) - Get Report

, a company which snags a majority of its profits from sales overseas. The stock was lately up 1 3/16 to 64 1/2.

9:58 a.m.: Stocks Plunge at the Open

A massive stock selloff is underway with the

Nasdaq Composite Index

leading the way south.

The

Dow Jones Industrial Average

was down 126 to 7616. The

S&P 500

was down 25 to 945, while the Nasdaq Composite was down 55 to 1407 and the

Russell 2000

was down 9 to 313. (The Dow's slide worsened after these figures were compiled, putting it off 147.)

The dollar's swoon was blamed in large part for the 30-year Treasury bond's fall. The long bond was recently off 13/32 to 109 16/32, yielding 4.89%. However, shorter-dated maturities were modestly higher.

The dollar's drop and weakness in overseas equity markets were two reasons cited for the sizable losses out of the chute.

Most Up at Open -- NYSE

Anglogold (AU) - Get Report, up 15/16 to 31

.

Most Up at Open -- Nasdaq

Mecklermedia (MECK) , up 5 7/16 to 25 5/8

:

Penton Media

(PME) - Get Report

said today it's buying Mecklermedia for $274 million.

Most Down at Open -- NYSE

Allied Irish Banks (AIB) , down 10 9/16 to 82 7/8

.