Wall Street's woes continued yesterday, as a darkening economic outlook sent the Dow Jones industrials down 3.6 percent, leaving the widely watched market barometer below 10,000 for the first time in four years.

The Dow fell as much as 800 points during another tumultuous trading session before rallying near the close to finish at 9,955.50, off 370. The Standard and Poor's 500 fell 3.6 percent to 1,056.89, while the Nasdaq closed at 1,862.96, off 4.3 percent.

Locally, the Post-Gazette/Bloomberg index of regional stocks fell 3.4 percent, leaving it down 31 percent for the year.

Troubled Cleveland banker National City suffered the most among regional stocks yesterday, falling 27 percent. After rallying last week as Congress passed $700 billion financial rescue legislation, it closed yesterday at $2.56, down 95 cents.

Mylan shares tumbled 12 percent after UBS lowered its price target and said there was an increasing risk that the Cecil-based generic drug maker might have to take on more debt. Mylan shares traded as low as $7.82 before closing at $9.00, down $1.27. They have fallen 36 percent this year.

The hefty declines in U.S. markets followed major losses earlier in the day overseas. Market observers blamed the retreat in overseas markets on evidence that growing weakness in the U.S. economy will ripple around the globe.

"We now have the recession, and the only question now is how deep," said Global Insight economist Nigel Gault.

Throughout the day, investors traumatized by bank failures, government-engineered rescues of financial firms and gloomy economic reports asked the question on everyone's mind: When and where will this end?

"Is this it? I don't know. It sure feels like it. The fear level is there," said Malcolm Polley of Stewart Capital Advisors, a unit of Indiana, Pa.-based S&T Bancorp. "There are some screaming buys out there. You just have to have people with enough intestinal fortitude to step up."

Mr. Polley blamed some of the panic on cable-channel CNBC's market commentator Jim Cramer, who yesterday advised listeners to retrieve money they have in the stock market if they'll need it in the next five years.

"That was an extremely irresponsible comment," Mr. Polley said. "Maybe he doesn't understand how many people do what he says, regardless of whether or not it makes sense."

John Frankola of Vista Investment Management in Pittsburgh said there are anecdotal, as well as statistical, signs that the frenzy of selling may be nearing its peak.

If that's the case, and you believe that governments and business will resolve the vexing problems facing markets and the economy, "it's got to be a phenomenal buying opportunity," Mr. Frankola said. "I have to believe at some point it will stabilize, and, when it does, the market will react favorably," he said.

While Lehman Brothers, AIG and other big-name financial stocks have been responsible for much of the dire news, shares of large, sounder banks as well as regional banks have held up well.

Six financial stocks were among the best performers in the PG/Bloomberg index yesterday, paced by an 11 percent rise in Parkvale Financial, which closed at $18.30, up $1.80. WVS Financial of West View rose 8 percent, closing at $17.26, up $1.26 or 8 percent, and Federated Investors advanced 4 percent, closing at $26.60, up $1.04.

Regional banks also account for seven of the 10 best-performing stocks so far this year. S&T Bancorp is the top performer, closing yesterday at $36.20, up 70 cents yesterday and 31 percent for the year.

"From our perspective, business has never been so good," Mr. Polley said. "We make good loans to people who can pay it back."

Energy and metals producers can't say the same. After enjoying strong advances last year with the run-up in commodity prices, they have been the worst performers of late, Mr. Frankola said.

"They were the last sectors that had any profits left in them, and people sold them for that reason," he said.

Three regional metals producers -- U.S. Steel, AK Steel and Allegheny Technologies -- have lost half or more of their value since the beginning of the year. Allegheny has been hurt the most. The specialty metals producer, which last month announced plans to invest $1.2 billion at its Brackenridge plant, fell $1.11 yesterday, closing at $24.31. It is off 72 percent for the year.

The only regional company to perform worse is National City, which is off 84 percent this year.