S&P 500 Plunges Most Since Black Monday 1987

16:30 ET
S&P 500 Plunges Most Since Black Monday
Dow -733.08 at 8577.91, Nasdaq -150.68 at 1628.33, S&P -90.17 at 907.84
[BRIEFING.COM] The stock market plunged the most since the crash of 1987 as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9.0%, settling near session lows.

Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.

Separately, the Producer Price Index, an inflation reading, fell 0.4% in September due to a decrease in commodity prices. Excluding food and energy, PPI rose 0.4%, which was more than the expected increase of 0.2%.

Although credit markets are showing signs of improvement, there are concerns that a recovery will take longer than hoped for. Dollar Libor, which is the rate banks charge each other for short-term dollar loans, slightly declined across all terms for the second straight session, but remain at highly elevated states. This indicates banks are more willing to lend to each other, but are still showing extreme caution. In addition, there was a high demand for Treasuries as investors seek safety.

An afternoon speech from Fed Chairman Bernanke and the release of the Fed's Beige Book did not give the market any real surprises, but painted a sobering economic picture and indicated that a recovery will take time.

Economic concerns sparked broad-based selling, with 99% of the S&P 500 posting a loss and all ten of the economic sectors ending the day deep in the red.

The energy sector (-15.5%) was hit the hardest, falling in conjunction with energy commodities. Crude prices tumbled 5.9% to $74.03 per barrel on global slowdown concerns and a cut in OPEC's demand forecast. On a similar note, commodity prices as a whole fell 4.5%, resulting in a 12.1% decline in the materials sector.

Defensive oriented sectors consumer staples (-6.0%) and healthcare (-6.7%) outperformed on a relative basis, but still posted steep declines.

In earnings news, quarterly results were mostly better than expected, although several companies that posted upside results still came under selling pressure.

Some of the more notable names that topped expectations include Abbott Labs (ABT 53.40, -1.38) Coca-Cola (KO 44.19. +0.46), Intel (INTC 15.05, +0.88), JPMorgan Chase (JPM 38.34, -2.37) and Wells Fargo (WFC 32.76, -0.76).

The S&P 500 is now up only 1.0% this week after giving up the majority of Monday's massive 11.6% gain. The index is still up 8.1% from its multi-year intraday low reached last Friday.

..Nasdaq 100 -8.8%. ..S&P Midcap 400 -9.7%. ..Russell 2000 -9.5%.