Dow Falls Over 350 Points on More Credit Market Worries

Washington Mutual shares fell over 17 percent after the company suggested that more problems are ahead in 2008.

Salem-News.com

(NEW YORK) - Stocks plummeted Wednesday on credit market fears as the Dow plunged 360 points, marking one of its biggest point declines of the year.

The Dow Jones Industrial average finished 360.92 points lower, or 2.64 percent, lower - its fifth biggest point decline so far this year.

The broader S&P 500 index (Down 44.65) plunged over 2.9 percent, while the Nasdaq (Down 76.42) lost 2.7 percent.

The selloff began early in the sesson on dismal earnings news from General Motors, before financials once again became the trading focus. Banks and brokerage stocks tumbled following a handful of warnings issued Wednesday that more writedowns were likely before the year's end.

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Citigroup continued its downward spiral, falling 3 percent. Goldman Sachs fell 4 percent and Lehman Brothers was down nearly 6 percent lower.

Oil prices fell Wednesday to 96.37 a barrel. Oil had set a new trading high overnight of $98.62.