Global economic concerns sparked a broad sell-off with the Dow collapsing 679 points to close at a five year low of 8579. Iceland seized control of the country's largest bank and suspended trading on its stock market until Monday. Nasdaq skidded 95 points to 1645.
On the downside
Standard & Poor's Ratings Services placed Ford's (NYSE: F) and General Motors' (NYSE: GM) corporate credit ratings under review for a possible downgrade citing the sluggish global automotive market.
The Federal Reserve will loan an additional $37.8 billion to American International Group (NYSE: AIG). The troubled insurer already received an $85 billion loan last month.
Primus Guaranty (NYSE: PRS) said that its exposure to Iceland's Kaupthing Bank totaled $68.2 million. Iceland announced that it will nationalize Kaupthing Bank, the country's largest bank.
Wal-Mart (NYSE: WMT) agreed to pay $199,000 in penalities for violating the Clean Air Act.
In the broad market, declining issues outpaced advancers by a margin of more than 11 to 1 on the NYSE and by nearly 6 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks slumped 47 points to 499.