NEW YORK — The stock market suffered one of its worst days since the financial meltdown Monday, slicing 680 points off the Dow Jones industrial average as Wall Street snapped out of its daydream of a rally and once again faced the harsh reality of a recession.
Not only did stocks end their five-day winning streak, they erased more than half the gains. The Standard & Poor's 500 stock index, one of the broadest market gauges, lost nearly 9 percent.
"This is just another episode in a long story, and the story is all about recession and the question is how long and how deep," said Chuck Widger, chief executive and chairman of investment management firm Brinker Capital. "We're going to have continuing volatility until investors have better visibility."
The selling was broad and deep. All 30 of the stocks in the Dow Jones industrial average finished lower. On the New York Stock Exchange, more than 7 stocks fell for every one that rose.
The Dow lost 679.95 points to close at about 8,149. There have been only three days in market history with bigger point losses for the Dow — the Monday after the Sept. 11 attacks, and Sept. 29 and Oct. 15 of this year.
Bond prices jumped as investors sought the safety of government debt. The yield on the three-month Treasury bill, considered one of the safest investments, slipped to 0.03 percent. That indicates investors are willing to accept tiny returns just to park their cash somewhere safe.
Monday's plunge fit what has become a pattern on Wall Street: The market makes big moves higher, including triple-digit gains in the Dow, only to quickly give them back as another batch of bad news arrives.