NEW YORK — Volatility is reasserting itself in the stock market.
A darkening outlook for companies from banks to retailers to energy producers pummeled Wall Street on Wednesday, sending the Dow Jones industrials down nearly 250 points, or 2.94 percent, and giving the other major indexes a loss of more than 3 percent.
The plunge leaves the Dow and the broader Standard & Poor’s 500 index down more than 9 percent in six sessions. The S&P 500, the gauge tracked by professional investors, has now given up half its gains since it closed at an 11-year low on Nov. 20.
A weak government report on retail sales touched off some of the markets’ latest turbulence. Wall Street knew retailers’ cash registers weren’t busy this holiday season, but the report was much worse than anticipated. The department said retail sales dropped 2.7 percent last month, more than double the 1.2 percent decline analysts forecast.
The record sixth straight month of declines is only the latest symptom of the economy’s ills. Consumers hit by sharp drops in home prices, rising unemployment and difficulty accessing credit have no choice but to pull back. That’s troubling for Wall Street because consumer spending makes up more than two-thirds of U.S. economic activity.
Investors also are increasingly uneasy about the financial industry.
Deutsche Bank’s announcement that it lost an estimated $6.4 billion in the fourth quarter intensified the market’s concerns that banks in general are still suffering and will need more government help.
“People were thinking we were coming toward the end of this financial meltdown, but as you can tell from the news today, we’re not even close to the end yet,” said Dave Rovelli, managing director of trading at brokerage Canaccord Adams.
On Wednesday, the Dow fell 248.42, or 2.94 percent, to 8,200.14. All 30 stocks that make up the Dow fell.
The S&P 500 fell 29.17, or 3.35 percent, to 842.62. The Nasdaq composite index fell 56.82, or 3.67 percent, to 1,489.64.
Wall Street will get further insight into the U.S. financial industry today when JPMorgan Chase reports earnings nearly a week ahead of schedule.
