Trader's Highlight

DJI-NEW YORK, Aug 8 (Reuters) - U.S. stocks plunged on Monday in the heaviest volume since last year's "flash crash," taking the S&P 500 down more than 6 percent on growing fears of a recession, in the first session after the historic loss of the country's pristine triple-A credit rating.

Panicked selling resulted in the S&P 500's worst day since December 2008, with every stock in the benchmark index ending in negative territory.

Volume totaled 17.89 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq -- the heaviest volume since the "flash crash" of May 6, 2010. Monday's volume was more than twice last year's daily average of 8.47 billion.

The Dow Jones industrial average .DJI lost 634.76 points, or 5.55 percent, to end at 10,809.85. The Standard & Poor's 500 Index .SPX sank 79.92 points, or 6.66 percent, to finish at 1,119.46. The Nasdaq Composite Index .IXIC plunged 174.72 points, or 6.90 percent, to close at 2,357.69.

NYMEX-NEW YORK, Aug 8 (Reuters) - U.S. crude oil futures slumped more than 6 percent to an eight-month low at the close on Monday, battered by a sell-off spurred by the downgrade of the U.S. credit rating.

U.S. crude closely followed Wall Street, where the Standard & Poor's 500 Index, the stock market's broadest barometer, plunged more than 6 percent on growing fears of another recession.

On the New York Mercantile Exchange, crude for September delivery settled at $81.31 a barrel, down $5.57, or 6.41 percent, the lowest since Nov. 23, 2010, when prices closed at $81.25. It was the biggest one-day percentage loss since May 5 when prices fell 8.6 percent.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade closed sharply higher on spillover support from limit gains in corn as hot weather in the U.S. threatened the crop, leading to forecasts for low corn yields.

The top U.S. corn and soybean state of Iowa had its hottest July in 56 years, raising worries that crop yields could be hurt, especially corn that pollinated last month, the state climatologist said.

FCPO-KUALA LUMPUR, Aug 8 (Reuters) - Malaysian palm oil futures dropped on Monday to its lowest in more than nine months, as investors fretted over global economic growth and the outlook for commodity demand after the United States lost its top AAA credit rating.

Palm oil fell below the key 3,000 ringgit level with losses coming mostly from broad-based commodity declines.

Asian shares also slid and the dollar touched a record low versus the Swiss franc, as global policymakers' pledge to take whatever actions needed to steady financial markets did little to pacify nervous investors.

The benchmark October contract KPOc3 on the Bursa Malaysia Derivatives Exchange fell as much as 1.9 percent to 2,994 ringgit ($993.53) per tonne -- lowest since late October.

Traded volumes stood at 38,986 lots at 25 tonnes each, up from the usual 25,000 lots.

REGIONAL EQUITIES-COLOMBO, Aug 8 (Reuters) - Southeast Asian stock markets fell on Monday in active trade, led by Singapore, on concern about the global economic outlook after Standard & Poor's downgraded the credit rating of the United States.

Singapore .FTSTI ended 3.7 percent weaker at a 13-month closing low, recovering only a little from a 4.9 percent fall at one stage, while Indonesia .JKSE closed 1.8 percent lower after tumbling as much as 5.2 percent.

Malaysia .KLSE ended 1.8 percent down and Thailand .SETI fell 1.4 percent. Trading volumes in Singapore and Malaysia were more than double their 30-day average, and Jakarta saw a 1.65 times its average.

Analysts said commodity companies could be worst hit due to fears of a global recession.

The Singapore market fell in strong volume ahead of a national holiday on Tuesday, with many investors preferring to cut risky positions since they would be unable to do so on Tuesday if the global jitters got worse.

Singapore-based Najeeb Jarhom, head of research at AmFraser Securities, said in a note that support on the main Singapore index had failed to hold at 2,920 and the next support level was at 2,875. The index closed at 2,884 on Monday.