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Wall Street Tumbles Amid Global Sell-Off

Trader Arthur Cashin wears a "Dow 10,000" hat, one that was given out when the Dow Jones Industrial Average first hit 10,000 on March 29, 1999, as he works on the NYSE trading floor Monday Oct. 6, 2008. (AP Photo/Richard Drew)

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Wall Street Tumbles Amid Global Sell-Off

By Becky Ogann

Story Created: Oct 6, 2008 at 10:13 AM CST

Story Updated: Oct 6, 2008 at 3:51 PM CST

NEW YORK (AP) - Investors have been roughed up by extreme turbulence.

Concerns about a weakening global economy is sweeping across Wall Street. It propelled the Dow Jones industrials down more than 800 points this afternoon, before stocks settled at 370 points down.

Investors around the world have been selling off stocks as they come to realize that financial systems in the United States and other countries need more than government bailouts to fix them.

Meanwhile, the credit markets remain stagnant, a sign that banks are too afraid to lend. The Federal Reserve is making more money available for borrowing, but no one expects the credit markets to ease up anytime soon.

The Dow earlier on Monday surpassed its previous record for a one-day point drop - 778, which the blue chips suffered a week ago when investors feared the bailout package might not pass Congress.

Oil prices have traded under $90 a barrel for the first time in eight months. Traders expect the widening financial crisis could drastically reduce global demand for energy.

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