Stocks were battered for a third straight session. Earlier in the day, Treasury Secretary Henry Paulson announced that that the government won't buy bad mortgage debt, choosing instead to buy stakes in banks. Best Buy slashed its outlook, citing the difficult economy.
The Dow fell 411 points to 8,282.
The S&P 500 lost nearly 47 points to 852.
And the Nasdaq composite dropped 81 points to 1,499.
Declining issues led advancing stocks by an 11 to 1 margin on the New York Stock Exchange.
Volume on the NYSE came to 5.5 billion shares. Nasdaq volume was 2.1 billion shares.