Major indexes fall more than 4 percent

NEW YORK (AP) — Wall Street tumbled again Wednesday as investors worried that the global economy is poised to weaken even as parts of the credit market slowly show signs of recovery. The major indexes fell more than 4 percent, including the Dow Jones industrial average, which finished off its lows with a loss of 514 points.

The Standard & Poor’s 500 index was the worst performer among the major indexes with a 6.1 percent slide that left it at its lowest level since April 2003.

Corporate profit forecasts, a jump in the dollar and falling oil prices signaled investors are fearful that an economic slowdown will sweep the globe even if lending begins to approach more normal levels.

The dollar hit multiyear highs against several other major currencies, weighing on commodity prices. That hurt raw materials and energy companies, while giving a boost to airlines. Technology shares fared better than the broader market after quarterly reports from Apple Inc. and Yahoo Inc.

Though reduced strains in global credit markets have eased some investors’ nervousness about the economy, market anxiety remains as hundreds of companies this week report third-quarter results and issue somewhat murky forecasts that are stirring unease about the economic bumps that may lie ahead.

Wachovia Corp., which is being bought by Wells Fargo & Co., reported that it swung to a huge loss in the third quarter while the drug maker Merck & Co. said its quarterly profit fell 28 percent and that it would cut more than 10 percent of its work force.

John Thornton, co-portfolio manager at Stephens Investment Management Group LLC in Houston, said investors’ fear has shifted from the immediate concerns about tightness in credit and the resulting difficulty in borrowing to the broader economy.

The Dow fell 514.45, or 5.69 percent, to 8,519.21, after being down as much as 698 points in the final half hour of trading. Still, the Dow finished above its Oct. 10 closing low of 8,451. The Dow fell 231 points Tuesday after jumping 413 points Monday.

Broader stock indicators also fell Wednesday. The Standard & Poor’s 500 index lost 58.27, or 6.10 percent, to 896.78, its lowest close since it finished at 892 on April 21, 2003.

The technology-heavy Nasdaq composite index fell 80.93, or 4.77 percent, to 1,615.75.