LOS ANGELES AND NEW YORK — The stock market endured its second thrashing in two days Thursday as dismal retail sales raised concern that a global recession could be longer and deeper than thought likely even a few weeks ago.
Weak October sales and downbeat earnings projections at companies such as Nordstrom Inc. and J.C. Penney Co. indicated that consumers were cutting spending in favor of paying off debt and preserving cash amid job-market insecurity.
The Dow Jones industrial average sagged almost 450 points in a near-replay of Wednesday's 486-point drop -- a total two-day drop of 9.7% -- and investors braced for potentially more losses today when the government releases its closely watched monthly unemployment report.
The economic turmoil also was reflected in the commodities markets, where crude oil and other prices fell sharply for the second consecutive day on fears of slowing worldwide demand.
"Over the last couple of days, now that the election is behind us, it appears that the equity market is seeing even more negative earnings and economic issues on the horizon, and an even more severe and prolonged downturn than previously anticipated," said Richard Weiss, chief investment officer at City National Bank in Beverly Hills.
The stock market sell-off illustrated the extent to which fear is gripping the markets.
Retail sales were widely expected to be weak in October, when the worst fallout from the housing collapse and credit crisis dominated the markets and presidential election. Yet share prices were pounded anyway.
"We've got markets trading on raw and pure emotion," said Jim Paulsen, chief investment strategist of Wells Capital Management. "It has little to do with fundamentals."
The Dow plummeted 443.48 points, or 4.9%, to 8,695.79. Combined with Wednesday's drop, the Dow suffered its biggest two-day percentage decline since the October 1987 market collapse.
The Standard & Poor's 500 index slid 47.88 points, or 5%, to 904.88. The Nasdaq composite index dropped 72.94 points, or 4.3%, to 1,608.70
Despite the sell-off, many investment pros cling to the hope that the major averages will remain above last month's lows. The Dow is 520 points above its Oct. 27 trough of 8,175.77, while the S&P is 56 points above its bottom of 848.92.
Economic worries pushed oil lower for a second day, and heating oil and copper fell more than 5% while natural gas was off more than 4.3%.
