NEW YORK (CNNMoney) -- U.S. stocks plunged on Tuesday as fears about a weak U.S. economy were enflamed after investors got another disappointing economic report - this time on consumer spending.The selloff was so broad and so deep it pushed the S&P 500 into negative territory for the year and bond yields to their lowest levels in nine months.
"Now that we have solved the debt ceiling issue the market has moved onto the other data, which has taken a significant turn for the worse," said Ryan Detrick, senior technical strategist with Schaeffer's Investment Research.
The Dow Jones industrial average (INDU) plunged 266 points, or 2.2%, to close at 11,867.
This was the eighth-straight day of declines for the Dow -- a losing streak not seen since October 2008, when the financial system was in the depths of the crisis. The Dow has fallen roughly 6.7% since the sell-off began on July 22.
The S&P 500 (SPX) lost 33 points, or 2.6%, to 1,254, and the Nasdaq Composite (COMP) dropped 75 points, or 2.8%, to 2,669.
The S&P 500 broke through several key technical resistance points as the session wore on, including the index's closely-watched 200-day moving average. The S&P closed below the 1,258-point mark -- putting it in negative territory for the year.
As the sell off accelerated, investors quickly shifted gears and fled to traditional safe-havens: bonds and gold.
The dollar gained ground against the euro, the Japanese yen and British pound.
Oil for September delivery dropped $1.43 to $93.44 a barrel.
Meanwhile, gold prices surged, hitting a record high of $1,644.50 an ounce.
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