US Stocks tumble into the fourth-quarter (ext.)

NEW YORK (CNNMoney) -- Stocks just closed out the worst quarter since the 2008 financial crisis, and the swoon is hardly over. With worries about Greece's solvency still in the spotlight, stocks kicked off the fourth quarter with a huge sell-off.

As investors shrugged off a positive U.S. manufacturing report and focused on the worsening debt crisis in Europe, stocks finished at their lowest levels since September 2010.

The Dow Jones industrial average (INDU) tumbled 258 points, or 2.4%. The S&P 500 (SPX) lost 32 points, or 2.9%, and the Nasdaq Composite (COMP) fell 80 points, or 3.2%.

The selling was broad and deep, with all major sectors firmly in the red.

"The economic and political backdrop is one of continued uncertainty as we start the fourth quarter," said Michael Sheldon, chief market strategist at RDM Financial Group. "There doesn't seem to be a near-term solution that will boost confidence among investors."

There isn't a whole lot of optimism that Greece will pull though. Almost all of the 22 economists surveyed by CNNMoney believe Greece will default on its debt by the end of next year.

Investors have been all consumed by the debt crisis in Europe and the outlook for global economic growth. The Federal Reserve and the International Monetary Fund have both warned of increasing risks to the global economic recovery.

The dollar rallied against the euro and the British pound, but lost ground against the Japanese yen.

Oil for November delivery lost $1.59 to settle at $77.61 a barrel.

Gold futures for December delivery rose $35.40 to settle at $1,657.70 an ounce. To top of page