"We're going to move in the opposite direction of oil, and General Motors is going to go out of business, at least according to Goldman Sachs," said Art Hogan, chief market strategist at Jefferies & Co.

The Dow Jones Industrial Average ($INDU:

Dow Jones Industrial Average

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 Last: 11,453.42-358.41-3.03%
4:30pm 06/26/2008
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$INDU 11,453.42, -358.41, -3.0%) tumbled 358.41 points, or 3%, to 11,453.42, leaving it down nearly 1,200 points, or 9.4%, for the month, with two trading days yet to go. As things stand, the month is the worst June so far since 1930 when the index declined 17.72%.

"It was the middle of March that the Bear Stearns debacle became public, sending the Dow to a low of 11,731. That level was broken within the first minute of trading today," wrote Kathy Lien, chief strategist of DailyFX.com.

Cautious outlooks from Research In Motion Ltd., Oracle Corp. and Nike Inc. added to the gloom.

General Motors (GM:

General Motors Corporation

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 Last: 11.43-1.38-10.77%
4:03pm 06/26/2008
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GM 11.43, -1.38, -10.8%) weighed most heavily on the blue chips, down 10.8%, after Goldman Sachs told clients to unload their positions in the face of the deteriorating automotive climate. See full story.

All of the Dow's 30 components closed in negative territory.

"The real problem is even though [the] Fed attempted to be more hawkish, it was not supportive enough of the dollar," Hogan said.

Crude-oil futures climbed to new heights, as weakness in the U.S. dollar, influenced by the Federal Reserve's decision to stand pat on interest rates, sent prices past $140 a barrel.

Crude for August delivery reached a high of $140.39 a barrel in electronic trading on Globex. The contract closed at a record $139.64 on the New York mercantile Exchange, up $5.09, or 3.8%, for the session after trading as high as $140. Read Futures Movers.

"One thing is for certain, if crude continues to rally, stocks are dead," said Dale Doelling, chief market technician at Trends In Commodities.

"If stocks have another day like this tomorrow, then the fallout next week could include government intervention in the markets," said Doelling.

The S&P 500 Index ($SPX:

S&P 500 Index

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 Last: 1,283.15-38.82-2.94%
4:59pm 06/26/2008
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$SPX 1,283.15, -38.82, -2.9%) fell 38.82 points, or 2.9%, to 1,283.15, with all 10 of the index's industry groups losing ground.

Financials led sector declines, off 4.1%, followed by industrials, down 3.7%, and consumer discretionary, which declined 3.5%.

The Nasdaq Composite Index (COMP:

Nasdaq Composite Index

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 Last: 2,321.37-79.89-3.33%
5:16pm 06/26/2008
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COMP 2,321.37, -79.89, -3.3%) shed 79.89 points, or 3.3%, to 2,321.37.

Volume on the New York Stock Exchange topped 1.5 billion, and declining stocks outdid those advancing more than 5 to 1. On the Nasdaq, nearly 998 million shares traded, and decliners raced beyond advancers 11 to 3.

The indexes furthered their losses as government data illustrated ongoing weakness in the labor market. Read Economic Report.