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 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.

Read: It's the momentum of the economic data that's worrisome

Crude-oil prices (CLZ4) fell anew on Wednesday, dropping 1% to fresh multiyear lows ahead of key supply data. Prices skidded 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 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%.

The AbbVie news spilled over to other so-called inversion plays. Covidien PLC(COV), which earlier this year agreed to be acquired by Medtronic Inc.(MDT), led S&P 500 decliners.

Hazmat-suit related companies that recently rallied on Ebola fears were surging once again. 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, and the benchmark Stoxx Europe 600 has fallen more than 10% from its 2014 high reached in June, putting it in correction territory.

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