Updated from 4:16 p.m. EDT

There weren't any baseball metaphors this time around, but Richard Fisher showed once again that he has a way with words.

Stocks closed near their lows of the session Tuesday following an afternoon selloff that came on the heels of hawkish comments from Fisher, the president of the Federal Reserve Bank of Dallas. The Dow Jones Industrial Average finished down 94.37 points, or 0.9%, to 10,441.11.

The S&P 500 lost 12.23 points, or 1%, to 1214.47, and the Nasdaq fell 16.07 points, or 0.75%, at 2139.36. The 10-year Treasury was up 3/32 in price to yield 4.37%, while the dollar rose against the yen and euro.

About 1.72 billion shares traded on the New York Stock Exchange, with decliners beating advancers by a 2-to-1 margin. Trading volume on the Nasdaq was 2.03 billion shares, with decliners outpacing advancers 3 to 2.

The major averages had been higher before Fisher gave a speech in which he said the "inflation rate is near the upper end of the Fed's tolerance zone, and it shows little inclination to go in the other direction."

Once those remarks -- which bolster the belief that the Fed isn't through raising rates -- became known, stocks began to fall back.

"These comments fall in line with other Fed comments that indicate concerns about inflation drifting higher," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "The Fed is continuing to raise rates in the face of higher energy prices. All of this is creating headwinds for the market. The comments, though, aren't a surprise at all."

St. Louis Fed President William Poole also spoke at a separate conference, but he didn't expound on the economic effects of hurricanes Katrina and Rita. Philadelphia Fed President Anthony Santomero will speak at 7 p.m.

Crude prices plummeted, with oil for November delivery diving $1.57 to $63.90 a barrel in Nymex trading after hitting an intraday low of $63. Natural gas futures rebounded from an earlier selloff to rise 21 cents to $14.23 per mmBtu, and unleaded gasoline was down 6 cents at $2 a gallon.

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