Dow Jones Falls Over 500 Points

Date: 8/4/2011

Dow Jones Down Almost 500 Points Massive Stock Market Sell Off Continues. Stocks decline for 8 out of 9 trading days. Wall Street Plunges on Economic Fears; Dow Sinks More Than 400 Points; S&P, Nasdaq Down 4%; VIX Soars. QE3 coming, but won't save economy. Oil falls to lowest level in over a month.SMF Warned Investors and Traders of the Pending Correction on 5/3/2011

WATCH! Stock Market Prediction 2011 Market Correction Has Started Part 1

Concerns about global economies continued to wreak havoc on commodities today. In turn, the CRB Commodity Index dropped 2.8% to a near seven-month low.

Oil suffered one of the steepest drops. Specifically, crude oil prices settled at 86.63 per barrel for a 5.8% loss. That marked its greatest single-day drop since May 5 -when it fell more than 8% - on the back of concerns about global economic health. Futures prices had recorded intraday lows of $86.04, which marks the commodity's worst level since February 18.

Natural gas prices closed lower by 3.4% at $3.95 per MMBtu. Futures prices had actually traded higher in early pit trade, but bearish inventory data spurred a reversal that took the commodity as low as $3.92 per MMBtu, which made for its worst level since mid-March.

However, safe havens like gold and silver benefited from weakness in the broader commodity complex and a plunging stock market. In morning trade, December gold, which eventually settled lower by 0.5% to $1658.20 per ounce, rallied to a new all-time high at $1684.90 per ounce. September silver, which lost 5.6% to close at $39.42, traded back above $42 to a three-month high of $42.30 per ounce. The late morning plunge suffered by the pair of precious metals took gold as low as $1642.20 per ounce and silver down to $38.47 per ounce. Many traders attributed the sell-off to liquidation that followed margin calls in other asset classes. DJ30 -404.19 NASDAQ -109.16 SP500 -47.09 NASDAQ Adv/Vol/Dec 243/2.43 bln/2383 NYSE Adv/Vol/Dec 175/1.17 bln/2928.

The Dow Jones industrial average was down 436.21 points, or 3.67 percent, at 11,460.23. The Standard & Poor's 500 Index was down 51.32 points, or 4.07 percent, at 1,209.02. The Nasdaq Composite Index was down 118.51 points, or 4.40 percent, at 2,574.56.

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