The markets plummeted for a second day in reaction to the Federal Reserve's prediction that economic growth will slow and surging crude oil prices that closed at a record $133.17 per barrel. The Dow skidded 227 points to 12,601 while Nasdaq plunged 44 points to 2448.

On the upside

Shares of Natural Guel Gas (NYSE: NFG) rose after UBS analyst Ronald Barone upgraded the energy company.

Shares of Chinese shipping company Sino-Global Shipping (Nasdaq: SINO) surged on its first day of trading.

Borders Group (NYSE: BGP) stock rose over rumors of a possible merger with Barnes & Noble (NYSE: BKS).

On the downside

Record crude oil prices sent shares of Northwest Airlines (NYSE: NWA), Delta Air Lines (NYSE: DAL) and Continental Airlines (NYSE: CAL) tumbling.

Tween Brands (NYSE: TWB) blamed a significant charge and lower same store sales for sharply lower first quarter earnings.

LTX (Nasdaq: LTXX) forecast fourth quarter earnings below expectations saying that weakness in the chip sector will affect sales.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 3 on the NYSE and by 11 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 9 points to 727.