U.S. markets resume skid Wednesday

NEW YORK, Oct. 15 (UPI) -- U.S. stock markets fell hard Wednesday as investors worried the economy was headed toward a recession.

Mortgage applications rose during the week ending Oct. 10, but mortgage rates also climbed, the Mortgage Bankers Association said.

U.S. retail sales also dropped sharply in September, with sales for food services and retail falling 1.2 percent.

Third quarter reports from JP Morgan Chase and Wells Fargo were positive, but Morgan Chase incurred heavy write downs after purchasing Washington Mutual last month.

By the close, the Dow Jones industrial average was down 7.87 percent to 8,577.91, losing 733.08 points. The Standard & Poor's 500 fell 90.17 or 9.03 percent to 907.84. The Nasdaq composite index lost 150.68 or 8.47 percent to 1,628.33.

On the New York Stock Exchange, 340 stocks advanced and 2,848 declined on a volume of 9.38 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 28/32 to yield 3.978 percent.

The dollar was mixed. The euro fell to $1.3493, compared to $1.3654 Tuesday, while the dollar fell to 100.04 yen from 102.04 yen.

In Tokyo, the Nikkei average gained 99.90 points to 9,547.47, up 1.06 percent.

The FTSE index in London fell 311.20 points, down 7.08 percent, to 4,083.00.