Federal Reserve Chairman Ben Bernanke did little to reassure markets when he cautioned that downside risks to economic growth have worsened, though he did signal a readiness to lower interest rates. An earlier move by the Federal Reserve to unclog the commercial paper market, which companies use to fund their day-to-day operations, gave the stock market only a fleeting boost.
The Dow Jones industrial average <.DJI> fell 508.39 points, or 5.11 percent, to 9,447.11. The blue-chip Dow has lost more than 1,400 points over the past five sessions, or nearly 13 percent of its value, according to Reuters data.
The Standard & Poor's 500 Index <.SPX> dropped 60.66 points, or 5.74 percent, to 996.23 -- the first time the benchmark index has closed below the 1,000 level in more than five years. The drop was the S&P 500's biggest five-day percentage decline since the 1987 crash.
The Nasdaq Composite Index <.IXIC> slid 108.08 points, or 5.80 percent, to 1,754.88.
NYMEX-NEW YORK, Oct 7 (Reuters) - U.S. crude oil futures ended higher on Tuesday, rebounding after four losing sessions though well off early highs hit after Australia's central bank cut its benchmark interest rate, lifting some global markets.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Short-covering bounce after Monday's limit-down close sent the spot contract to a near one-year low, leaving prices oversold. Additional support from a farmer strike in Argentina.
Daily trading limits expanded to $1.05 per bushel for Tuesday's trading session.
SOYOIL - October
Technical bounce after sharp declines on Monday; strength in crude oil adds support.
Daily trading limits expanded to 3.5 cents per lb. for Tuesday's trading session.
FCPO-JAKARTA, Oct 7 (Reuters) - Malaysian palm oil futures closed up 1.65 percent on Tuesday on short-covering, but came off the day's high on a late sell-off as sentiment remained weak on demand concerns, some traders said.
The benchmark December contract
REGIONAL EQUITY-SINGAPORE, Oct 7 (Reuters) - Southeast Asian stock markets were mostly lower on Tuesday as the global credit crisis deepened, with Thai shares further burdened by domestic political strife.World stocks remained under pressure Tuesday after talk of government funding hit UK banks.
Thailand <.SETI> slid 4.2 percent as the resignation of the government's top negotiator with opposition protesters marked a new low. But Singapore shares <.FTSTI> gained as much as 2 percent on news of a 100-basis-point interest rate cut in Australia.
Malaysia <.KLSE> closed flat. Elsewhere, Indonesia <.JKSE> fell 1.8 percent, the
Philippines <.PSI> slid 3 percent, while Vietnam <.VNI> fell a 4.5 percent to its lowest since early July.