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Stocks plummet as bad news overwhelms investors

NEW YORK (AP) β€” Investors fled Wall Street as fear grew about the stability of the nation’s largest banks and worries mounted about General Motors.

Stocks ended at 12-year lows Thursday as the major market indicators fell 4%, more than wiping out the previous day’s rally. Investors wrestled with more disheartening economic data, new concerns about GM and relentless uncertainty about the financial system. Short selling ahead of the government’s Friday employment report exacerbated the losses, slashing 281 points from the Dow Jones industrials.

Stocks fell in every industry, with beleaguered banks posting some of the steepest drops. Citigroup, still shaky despite receiving billions in government aid, at times sank below $1 and finished down 10% at $1.02. General Motors, meanwhile, ended with a loss of 15% at $1.86 as it warned of possible bankruptcy.

So which is it? Are they up, or down? Is it good news or bad news?
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