Investors' respite from sinking stock prices ended Thursday as major U.S. stock market indexes slid back under their recent bear-market closing lows amid more hemorrhaging in the financial sector. At about 11:50 a.m., the Dow Jones Industrial Average was down 194 points, falling below the benchmark's recent bear-market closing low of 6726.02, reached Tuesday. Citigroup shares were down more than 12%, falling to less than $1. Bank of America was down 11%. J.P. Morgan Chase, thought to be the healthiest of the big three Dow banks, was down 9%. Investors also pushed shares of General Motors down more than 16% to less than $2 after it said in a securities filing that its auditors raised substantial doubt about the auto maker's ability to continue operating. General Electric, which has fallen in recent weeks to multiyear lows amid fear that the conglomerate could lose its AAA credit rating, was up 2.7% in recent trade. Its chief financial officer said on CNBC, a television network GE owns, that a cut in its credit rating seems possible but would have no operational impact on the company. The S&P 500 was recently down 3.2%, falling below 700 and its bear-market low of 696.33, amid declines in all of its sectors. The financial sector was once again its weakest, tumbling by nearly 9%. Wells Fargo shares were down 17% after Moody's said it is considering downgrading the bank's credit rating. Markets had snapped a five-day losing skid on Wednesday amid hopes that an economic stimulus plan from China would help jolt the global economy back to life. Commodities and industrials shares surged. But those gains evaporated on Thursday after China's premier tamped down expectations for more stimulus. The S&P's industrial sector was recently down 4.5%, while utilities were down almost 4%. Basic materials and energy were also big losers, declining 3% each. Investors seem to be bracing for a prolonged period of daily market swings that are wide but don't necessarily add up to any clear trend, said Paul Britton, chief executive of the trading firm Capstone Holdings Group. The Chicago Board Option's Exchange Volatility Index, which uses options prices to gauge investors' fear of an upcoming market swing, fell nearly 10% over the past two trading sessions. It rebounded about 4% in recent action but is still hovering well below its peaks of last autumn. "In an environment like this, you have to make smaller-sized trades because you don't know if you're going to be able to get out," if the market moves adversely and there's no stampede of other participants trying to unwind positions, said Britton. Wal-Mart Stores was one of the market's few bright spots after it posted a 5.1% jump in February same-store sales and said it would increase its dividend 15%. Its shares rose 3.3%. Other chains reported generally better-than-expected sales for last month, though many relied on deep discounting that may pressure profit margins. The consumer-discretionary sector of the S&P 500 fell 4%. The Nasdaq Composite Index was down 2.6%. In Europe, the European Central Bank cut its primary lending rate to a record low of 1.5%, from 2%. The Bank of England became the first European central bank to implement quantitative easing policy, saying that it would purchase up to $106.28 billion in mostly medium and long-term U.K. government debt. The central bank also cut its key interest rate by a half point to 0.5%. The FTSE 100 was down more than 2% and European markets more broadly were weaker. The dollar advanced against the euro. Treasury prices were higher after falling Wednesday amid concern about incoming supplies of new debt. Oil prices sank as worry about demand reasserted itself. Gold prices were modestly higher. Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=xP2LmMEqaiBl33znOMNeUw%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires March 05, 2009 11:54 ET (16:54 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 11 54 AM EST 03-05-09