Updated from 4:14 p.m. EDT

Stocks in the U.S. finished with steep losses Thursday as weak economic data, new signs of a lending crunch and uncertainty about the upcoming House of Representatives' vote on the bailout plan for financial firms kept buyers away from the market.

The Dow Jones Industrial Average dropped 348.22 points, or 3.2%, to 10,482.85, and the S&P 500 lost 46.78 points, or 4%, to 1114.28. The Nasdaq slipped 92.68 points, or 4.5%, to 1976.72.

After the close of Wednesday's trading, the Senate passed the bailout bill with a 74-25 vote. The House of Representatives had rejected an earlier version of the proposal on Monday, and the stock market responded with one of its worst performances. Among other revisions, the bill passed by the Senate included $110 billion in tax incentives aimed at fostering economic growth.

The House is expected to vote on the revised package Friday.

"I think, honestly, the Senate was kind of a foregone conclusion," said Michael Church, portfolio manager at Church Capital Management. He said that the real hurdle for the rescue package has been in the House, where local interests are holding lawmakers back from passing the bill.

"You look at some of the stuff that got thrown on that thing, you have to shake your head and say that some of these guys are being bought," he said. Church also said that sentiment is so awful that a short-term surprise rally isn't out of the question.

Chris Johnson, CEO and chief investment officer at Johnson Research, said he's confident the bill will pass. He said it appears House lawmakers revised their opinion of the bill after the stock market dropped on Monday. The bill is also "aimed more at helping the common person, at least from a PR perspective," he said.

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