U.S. stocks dropped and the benchmark index for global equities slid to a five-year low as concern grew that the credit crisis has infected the broader economy. Wall Street ended the week with another sharp loss, joining stock markets around the world that fell on the growing belief that a punishing economic recession is at hand.

The S&P 500 sank 31.35 points, or 3.5 percent, to 876.76 after losing as much as 6 percent during the day. The Dow Jones Industrial Average slid 312.3 points, or 3.6 percent, to 8,378.95. The Nasdaq Composite Index declined 51.88, or 3.2 percent, to 1,552.03.

Many investors and analysts speculated that today’s declines were being exacerbated by hedge funds facing margin calls, or demands to repay borrowed money used to buy shares whose value has dropped.

(Bloomberg / Wall Street Journal)