NEW YORK—Stocks pulled back sharply Wednesday, erasing most of the previous session's big gains as investors grew concerned about high commodities prices and the possibility that banks remain vulnerable to further problems from soured debt. The Dow Jones industrial average fell nearly 300 points after rising 420 on Tuesday.
Talk swirled about whether further write-downs are in the offing after Merrill Lynch & Co. filed a lawsuit against a company involved in a debt transaction with the company, according to several reports. Merrill was among the steepest decliners of the financial stocks.
Hey look: The Dow Jones looks just like a y=sin(x) graph!