Dow loses 293, back in the red for 2015
Stocks fell for a third straight day Wednesday as the Dow plunged 293 points and turned negative for the year.
The big drop came after a disappointing manufacturing report and news of a mega-merger between two food icons.
The Dow Jones industrial average fell 1.6% to 17,718.54 in posting its worst point loss since a 333-point drop on March 10.
The Standard & Poor's 500 index dropped 1.5% to 2061.05. Technology was the hardest hit sector of the 10 S&P 500 sectors. The tech-heavy Nasdaq composite index plunged 2.4% to 4,876.52.
Weighing on stocks was a government report that orders for durable goods tumbled a larger-than-expected 1.4% in February. It was the third drop in the past four months for orders to U.S. factories for long-lasting goods.
Weak economic data could weigh on corporate earnings, a key underpinning of rising stock prices.
The wild point swing experienced by the Dow on Wednesday, however, was not a new development, as daily swings have gotten more dramatic in March. The blue chip index saw its 14th session of gains or losses of 100 points or more out of 18 trading days this month.
Investors are still adjusting to the idea that interest rates will be moving up at some point this year. The price moves today and for most of this week, however, have come amid light trading volume, which allows prices to fluctuate more dramatically.
News of a merger between H.J. Heinz and Kraft Foods Group (KRFT) that will form the fifth largest food and beverage firm in the world sent shares of Kraft soaring 35.6%.
The combined company will have approximately $28 billion in revenue and will hold a portfolio of iconic food brands including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia.
Other food stocks got a boost as well: General Mills (GIS) rose 1% and Kellogg (K) gained 0.3%.
Energy stocks rose as oil prices rebounded. U.S. benchmark crude rose $1.43 to $48.94 a barrel.
Overseas, European stocks were lower as Britain's FTSE 100 index dropped 0.4% and Germany's DAX index fell 1.2%.
In Asia, Japan's Nikkei 225 index gained 0.2% and Hong Kong's Hang Seng index rose 0.5%. The Shanghai Composite fell 0.8%.
Stocks fell Tuesday as the Dow dropped 104.90 points to 18,011.14 and the S&P 500 fell 12.92 to 2091.50.
Contributing: USA TODAY's Adam Shell