MARKET SNAPSHOT: U.S. Stocks Slide; Dow Drops Triple-digits

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market plunged in early trading on Wednesday as investors jettisoned risky securities and scrambled for the safety of government bonds. Although the markets were rebounding somewhat off of their earlier lows late in the morning, a pall of uncertainty persisted.

At session lows, the S&P 500 briefly turned negative for the year and on an intraday basis recorded a 9% decline from peak to trough.

The move in the bond market was dramatic as well, as U.S. 10-year Treasury note yield briefly dived 35 basis points, breaching the 2% level. Follow today's stock market coverage in a live blog.

The S&P 500 (SPX) fell 27 points, or 1.4%, to 1,851.19 and is nearly 8% below its peak reached on September 18.

The Dow Jones Industrial Average (DJI) dropped 231 points, or 1.4%, to 16,086.27. The blue-chip index briefly dipped below 16,000 and it down 2.8% year-to-date.

The Nasdaq Composite (RIXF) lost 45 points, or 1%, to 4,182, while the Russell 2000 (RUT) pared losses and was flat at 1,061.

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.

Sean Darby, chief global equity strategist at Jefferies, said it's unlikely the U.S. stock market has entered a bear-market phase, but rather investors are just unwinding "unfettered confidence" in central-bank policy.

"The equity market will bottom out once commodity prices find a floor and the fear of deflation recedes," he said in a note dated Tuesday. 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.

The Federal Reserve's Beige Book is due at 2 p.m. Eastern, and it's expected to paint a picture of an improving U.S. economy.

Stocks to Watch: AbbVie Inc. (ABBV) shares fell 4% 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 premarket trading on Wednesday. Shares of Lakeland Industries Inc. (LAKE) rallied 15%, Alpha Pro Tech Ltd. (APT) jumped 21% and Versar Inc. (VSR) picked up 36%.

Qualcomm Inc.(QCOM) said it has offered to buy U.K. chip maker CSR PLC in a $2.5 billion deal. In August, CSR rejected a takeover offer from Microchip Technology Inc. (MCHP). U.S-listed CSR shares (CSRE) surged 31%. .

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.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires