Updated from 4:14 p.m. ESTStocks tumbled Monday as new concerns about violence in the Middle East helped extend a correction that is now almost two months old. All three major averages hit fresh lows for 2004, with the worst selling occurring in the Nasdaq, where investors have now given back more than 10% since late January. The Dow Jones Industrial Average closed down 121.85 points, or 1.2%, to 10,064.75; the Nasdaq Composite was off 30.56 points, or 1.57%, to 1909.91; and the S&P 500 shed 14.34 points, or 1.29%, to 1095.44. The day's one saving grace was its light volume: about 1.4 billion shares on the New York Stock Exchange and more than 2 billion shares on the Nasdaq Stock Market. "People are concerned about what the Hamas response will be to Israel's killing of their spiritual leader," said Robert Pavlik, portfolio manager at OakTree Asset Management. "There's a lot of uncertainty in the market now about what to expect from the upcoming earnings season, where the price of oil is going, what the November election might bring and where this economy is going, and when you combine all of that with the fear of terrorism, it keeps buyers on the sidelines." The Dow went as low as 10,012 Monday, while the Nasdaq hit 1897 and the S&P 500 touched 1089. All were lows for 2004, eclipsing the nadirs set March 15, when shock over the Madrid train bombings sent the Dow to a 137-point loss and dragged the Nasdaq down 2.3%. The Dow is currently down 3.7% for 2004 and has fallen 6.3% from its Feb. 11 high of 10,737. The Nasdaq is off 4.6% for the year and 11.3% from its Jan. 26 high of 2153. "The market's in a bit of a news vacuum right now, and terrorism fears are filling that void," said Brian Piskorowski, market analyst at Wachovia Securities. "The market does not do well with unrest, but I think, if left to its own devices, the market would have a hard time running on its own steam." "We're looking a little tired here," Piskorowski said. "Technicals have been deteriorating over the last few weeks, and this is the correction that we haven't had in over a year." Ken Tower, chief market strategist with Cybertrader, noted that the major indices hit new lows for the year last week and stayed in a tight, six-day trading range afterward. Monday's piercing of those levels could signal that the current correction has gained traction and that the markets are adjusting to lower valuations. "That suggests we're still in the downtrend that we watched develop over the last month," Tower said. "We're in the correction that we have been waiting so long for, but our forecast for the year is still good. We think that this is the second year of a two-year bull market, and we're just looking at this as a correction that is primarily focused in the Nasdaq, where valuations got a little ahead of themselves." The major averages currently sit between technical barriers mapped out by their 50-day and 200-day moving averages. Coming into Monday, the Dow's 50-day moving average stood at roughly 10,509, while its 200-day moving average was 9799. The Nasdaq's 50-day moving average was 2048, while its 200-day moving average was 1886.