Dow Falls Below 10,000 On Selling Frenzy

February 8, 2010 5:37 p.m. EST

New York, NY, United States (AHN) - A sudden blue chip selling frenzy at the closing bell sent the Dow Jones Industrial Average crashing and closing below the 10,000 mark for the first time in three months.

The index lost 104 points or 1 percent falling to 9,908 with Bank of America, American Express, Travelers and J.P. Morgan Chase leading the losers.

The slump came as the Federal Reserve announced plans to tighten credit later in the year and lingering doubts on the creditworthiness of some European Union members.

The Standard & Poor 500 shed 0.9 percent to 1,066 with financial stocks also causing the decline.

The Nasdaq Composite was down 0.7 percent to 2,126.

Meanwhile, gold for April delivery rose $13.40 or 1.3 percent to finish at $1,066 an ounce on the New York Mercantile Exchange.

Crude oil for March delivery finished one percent higher or 70 cents to $71.89 a barrel amid concerns of weak demand.