NEW YORK — 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. Major indexes fell more than 4 percent, with the Dow Jones industrial average finishing off its lows but down 514 points.
The Standard & Poor’s 500 was the worst performer among 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 commodity prices signaled that investors are fearful that an economic slowdown will sweep the globe even if lending approaches more normal levels as credit markets ease.
The dollar hit multiyear highs against several major currencies, weighing on commodity prices. That hurt materials and energy companies, while the fall in oil boosted airlines.
Technology shares fared better than the broader market after quarterly reports from Apple and Yahoo.
While 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 bumps that may lie ahead.
Wachovia, which is being bought by Wells Fargo, reported that it swung to a huge loss in the third quarter, while drugmaker Merck said its quarterly profit fell 28 percent and it would cut more than 10 percent of its workforce.
John Thornton, co-portfolio manager at Stephens Investment Management Group 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 as companies come out with their quarterly numbers.
“Even if it weren’t for the credit crisis, we’d probably be looking toward a pretty tough recession anyway,” he said. “The third-quarter earnings are kind of uninspiring, but third quarter hasn’t been the real concern of people. I think the concern is the depth and duration of the downturn and the effect it’s going to have on earnings.”
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 benchmark index fell 232 points Tuesday after jumping 413 points Monday.
Broader stock indicators also fell Wednesday. The S&P 500 lost 58.27, or 6.10 percent, to 896.78, its lowest close since it finished at 892.01 on April 21, 2003. The decline leaves the index 42.7 percent below its record close of 1,565.15 in October last year.
The technology-heavy Nasdaq composite index fell 80.93, or 4.77 percent, to 1,615.75.
