Bank stocks, bonds, and other stocks nosedived on Wednesday after Federal Reserve chairman Alan Greenspan cast doubt on future interest rate reductions.

The markets recaptured some ground later in the volatile session, but endured serious losses from what appears to be a growing case of second- half jitters. The Dow Jones industrial average fell by as much as 134.19 points before recovering to 4,628.87, off 57.41 for the day.

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