Stocks accelerated their post-election sell-off across the board Wednesday, triggered by worries over the looming “fiscal cliff” and as fears over Europe’s economy reemerged.

The Dow tumbled below 13,000, while the S&P 500 broke 1,400, both for the first time since early September.

“It’s now how quickly we can focus on the ‘fiscal cliff’ and coming up with a resolution—that’s certainly the next item on the agenda for the market,” said Art Hogan, managing director of Lazard Capital Markets. “And you still have Europe.”

Stocks tumbled sharply across the board Thursday after a gloomy outlook from the Federal Reserve and weak manufacturing reports from Europe and China raised further concerns the global economy could sink back into recession.

The Dow Jones Industrial Average plunged heavily, led by United Tech [UTX 69.515 -5.355 (-7.15%) ] and Alcoa [AA 10.19 -0.65 (-6%) ] after finishing lower in the previous session. The Dow was down more than 370 during its intraday low.

The SP 500 and the Nasdaq also declined sharply. The CBOE Volatility Index, widely considered the best gauge of fear in the market, soared near 41.

All 10 SP sectors remained deep in negative territory, led by materials and energy.

Tiny URL for this post:
 

Post to Twitter