UPDATE | Dow industrials drop another 1,000 points as selling spreads

NEW YORK (AP) — Stocks plunged again today, and for the second time in four days the Dow Jones industrial average sank more than 1,000 points.

The two best-known stock market indexes, the Dow and the Standard & Poor's 500, have dropped 10 percent from their all-time highs, set Jan. 26. That means they are in what is known on Wall Street as a "correction," their first in almost two years.

Stocks fell further and further as the day wore on and suffered their fifth loss in the last six days. Many of the companies that led the market's gains over the last year have struggled badly in the last week. Those included technology companies, banks, and retailers and travel companies and homebuilders.

After huge gains in the first weeks of this year, stocks started to tumble last Friday after the Labor Department said workers' wages grew at a fast rate in January. That's good for the economy, but investors worried it will hurt corporate profits and that rising wages are a sign of faster inflation. It could prompt the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy.

"Far and away the most important things are the fear that the Fed is going to make a mistake, and higher wages are going to cut into margins," said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. The worry, he said, is that the Fed will raise interest rates too quickly.

3:43 p.m.

NEW YORK (AP) — Stocks are sinking again today, extending a streak of losses that has yanked the market away from record highs. The Dow Jones industrial average slumped more than 600 points. The tumult started last Friday as investors worried about signs of rising inflation.

The market fell steadily as the day wore on and is on track for its fifth loss in the last six days. Many of the companies that led the market's gains over the last year have struggled badly in the last week. Those including technology companies, banks, and retailers and travel companies and homebuilders.

The Dow Jones industrial average lost 631 points, or 2.5 percent, to 24,262. Boeing and Caterpillar took some of the worst losses. The Nasdaq composite fell 164 points, or 2.3 percent, to 6,887.

1:10 p.m.

NEW YORK (AP) — Stocks are sinking again today, extending a streak of losses that has yanked the market away from record highs.

The Dow Jones industrial average slumped 600 points. The tumult started last Friday as investors worried about signs of rising inflation.

The market fell steadily as the day wore on and is on track for its fifth loss in the last six days. Technology companies, the leading sector over the past year, and banks fell the most.

The Standard & Poor's 500 index, the benchmark for many index funds in 401(k) accounts, is now down 8.8 percent from the latest record high it set Jan. 26. It's still up 15 percent over the past year.

Stock trading turned volatile over the last several days, breaking an unusually long period of calm. European markets were also lower after the Bank of England said it could raise interest rates in the coming months.

After huge gains in the first weeks of this year, stocks tumbled Friday after the Labor Department said workers' wages grew at a fast rate in January. That's good for the economy, but investors worried it will hurt corporate profits and that rising wages are a sign of faster inflation. It could prompt the Federal Reserve to raise interest rates at a faster pace, which would act as a brake on the economy.

The S&P 500 shed 58 points, or 2.2 percent, to 2,620 as of 1 p.m. Eastern time.