Stocks plunged Wednesday, as yet another Federal Reserve official issued a late-afternoon warning that inflation risks outweighed concerns about growth in the wake of hurricanes Katrina and Rita. The warning came after fresh evidence that the U.S. economy is feeling the pinch of a post-hurricane surge in energy prices and an accompanying plunge in consumer confidence. With its leading sectors down for the count -- the energy sector dropped again as crude oil fell and homebuilders remain pressured by a rising rate outlook -- the market has nowhere to go but down, says Marc Pado, a market strategist at Cantor Fitzgerald. "It's an accumulation of all these factors coming into play, and now the market is reversing the complacency it showed in September" over the impact of the hurricanes and soaring energy prices. The result: The three main stock proxies plunged to three-month lows. After losing 94 points Tuesday, the Dow Jones Industrial Average fell by another 123.75 points, or 1.19%, to 10,317.36, a three-month low. The index broke through important technical resistance at 10,550. Likewise, the S&P 500 fell 18.08 points, or 1.49%, to 1196.39, also at three-month low, after breaking through key resistance at 1200, its 200-day moving average. The losses were even steeper for the tech-heavy Nasdaq Composite, which dropped 36.34 points, or 1.70%, to 2103.02. The Comp was weighed down by weakness in big-cap tech names such as Apple ( AAPL), as well as large percentage losses on heavy volume for smaller components such as ADC Telecommunication ( ADCT) and Human Genome Sciences ( HGSI). Echoing Dallas Fed President Richard Fisher on Tuesday, Kansas City Fed President Thomas Hoenig on Wednesday reiterated the view that inflation remained enemy number one for the central bank, catalyzing the market's current concerns. The market had already given in to some selling pressure earlier, after the Institute for Supply Management said that its non-manufacturing index plummeted in September. Contrary to Monday's ISM report showing that the manufacturing sector remained strong after the hurricanes, the service-sector survey, which represents over 80% of the economy, revived concerns over economic weakness.