MARKET SNAPSHOT: U.S. Stocks Plummet As Selling Intensifies

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- Selling pressure intensified on Wall Street Wednesday, as the Dow Jones Industrial Average fell more than 400 points at one point and U.S. stock benchmarks sank to multi-month lows.

Investors jettisoned risky securities and scrambled for the safety of government bonds, as 10-year Treasurys surged and yields briefly dipped below 2%. Read: Here's what's driving the market meltdown

The S&P 500 turned negative for the year and is currently 9% below its record close, reached on Sept. 18. The Nasdaq Composite at one point entered correction territory, falling more than 10% from its previous peak.

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The S&P 500 (SPX) slid 40 points, or 2.2%, to 1,828.74, on track for its biggest one-day percentage drop since November 2011.

The Dow Jones Industrial Average (DJI) dropped 328 points, or 2.5%, to 15,904.43. The blue-chip index is down 4% year-to-date.

The Nasdaq Composite (RIXF) lost 91 points, or 2.2%, to 4,132.21 and is on track to close 10% below its peak reached on September 2.

The Russell 2000 (RUT) fell 9 points, or 0.8%, to 1,052.

Disappointing economic reports ahead of the bell added to already jittery sentiment on Wall Street. Reports on manufacturing in the state of New York and U.S. wholesale prices missed expectations, and a reading on retail sales showed a decline for the first time in eight months.

Crude-oil prices (CLZ4) fell anew on Wednesday, dropping 1% ahead of key supply data. Prices hit a two-year low on Tuesday after a cut in the outlook for oil-demand growth from the International Energy Agency.

Read: These 5 charts explain when to call a bottom in the S&P's slide

Today's market-moving news: Among the big companies reporting earnings ahead of the bell, Bank of America (BAC) reported a third-quarter loss that was smaller than expected.

In economic news, the Empire State manufacturing survey retreated sharply to 6.2 in October. Economists polled by MarketWatch had expected a 21.0 reading

Retail sales fell 0.3% in September, and a producer price index dropped 0.1%, while economists surveyed by MarketWatch had predicted a 0.1% increase.

Stocks to Watch: The financial sector led the rout in U.S. stocks on Wednesday, as investors grew concerned about a range of issues from the economy to inflation to the current Ebola outbreak.

J.P. Morgan Chase & Co. (JPM) was the biggest loser in the Dow Jones Industrial Average DJIA falling nearly 5%. The Financial Select Sector SPDR Fund (XLF), which tracks financial stocks in the S&P 500 SPX fell 3.4%.

AbbVie Inc. (ABBV) shares fell 1.3% after the U.S. drug maker indicated it's reconsidering a $54 billion deal to buy Shire PLC in light of new Treasury rules that make that deal less attractive. Shares of Shire slumped 26% in London, weighing on the FTSE 100, while its U.S.-listed shares (SHPGY) sank 23%. Ireland to close 'Double Irish' tax loophole

Hazmat-suit related companies that have recently rallied on Ebola fears were surging once again in trading on Wednesday. Shares of Lakeland Industries Inc. (LAKE) rallied 14%, Alpha Pro Tech Ltd. (APT) jumped 12% and Versar Inc. (VSR) soared 46%. .

American Express (AXP), Netflix Inc. (NFLX) and eBay Inc. (EBAY) will report after the close. Check out MarketWatch's for previews.

Other markets: Asian stocks largely rebounded from Tuesday losses. Gold prices (GCZ4) edged up. European stocks skidded, with the benchmark Stoxx Europe 600 down 10% since its 2014 high reached in June, putting it into correction territory.

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