Dow tumbles 315 points, the second worst day of the year for stocks, after AIG's big loss and UBS's outlook on financials.
Stocks tumbled Friday, resulting in the second worst day of 2008, after AIG's record loss added to worries about the financial sector and more weak economic news intensified fears about a recession.
According to early tallies, the Dow Jones industrial average (INDU) lost about 315 points, or 2.5%. The broader Standard & Poor's 500 (SPX) index lost 2.7% and the Nasdaq composite (COMP) fell 2.6%.
Treasury prices rallied, sending yields higher, as investors sought safety in the comparatively safer haven of government debt, while the dollar held near a record low versus the euro. Oil prices dipped after topping all-time highs over $103 a barrel during the session. Gold prices jumped too.
"It's a debacle today," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. "There's just no good news out there."