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Stocks pummeled by economic fears

A major reversal on Wall Street Wednesday erased early gains and left stocks lower for the fifth time in six sessions.

Tech once again was the leader to the downside as investors continued to book profits from the high-flying names that drove stocks from the March lows.

The Dow shed 525 points. The S&P 500 gave up 78. The Nasdaq tumbled 330 points - back into a market correction of down at least 10 percent from the record high set on September 2nd.

Investors are grappling with realities they seemed to ignore during the summer, says Dryden Pence, president, Pence Wealth Management.

"Well, I think that people are having to recognize that COVID is not over. You're seeing a continued shutdown in Europe, that we're gonna be living with this for a while. There's no immediate result to this. So it's an adjustment of how we adapt and how long is this gonna go on before people get back to normal. So I think that that is one of the realizations that probably are taking a layer out of a little fluff out of the market because people realized, oh, gosh, this is gonna go. This is going to continue to go on."

Analysts also point to political uncertainties surrounding the November elections for the recent uptick in volatility.

There are also economic worries...A September slowdown in the massive U.S. services sector offset gains seen at factories, according to a private industry survey that suggests the economic rebound is losing momentum.

On the corporate front: In another blow to the movie industry, Walt Disney postponed the release of superhero flick "Black Widow" and Steven Spielberg's "West Side Story" until next year - taking two blockbusters off the crucial end-of-year schedule. Shares of Disney closed lower as did theater chain AMC, which tumbled more than 8 percent.