A slowdown in consumer spending along with concerns that yesterday's rate cut will be the Fed's last sent the markets skidding to a close with the Dow plummeting 362 points to 13,568. Nasdaq plunged 64 points to 2795.

On the upside

Generex Biotechnology's (Nasdaq: GNBT) non-injectable insulin product Oral-lyn was approved for use in India.

Bare Escentuals (Nasdaq: BARE) reported third quarter earnings that more than doubled as revenue surged.

Hornbeck Offshore Services (NYSE: HOS) impressed with third quarter earnings that rose to beat expectations by a wide margin.

On the downside

China Precious Steel (Nasdaq: CPSL) will sell 7.1 million shares of common stock to raise $47.9 million.

Shares of bond insurer Ambac Financial (NYSE: ABK) continued to fall as credit concerns intensified.

Concerns that mortgage defaults will continue to rise sent shares of bond insurer MBIA (NYSE: MBI) tumbling.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 1 on the NYSE and by a margin of more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 33 points to 795.