Dow plunges 362 points on credit fears

Citigroup downgrade reignites credit concerns and leaves major gauges sharply lower, wiping out Fed rate cut bounce.

NEW YORK (CNNMoney.com) -- What a difference a day makes.
The Dow industrials, a day after rallying on an interest rate cut by the Federal Reserve, suffered one of its biggest declines of the year on Thursday after a Citigroup downgrade reminded Wall Street that the crisis plaguing the credit crisis markets is lingering.
The Dow Jones industrial average finished 362 points, or 2.6 percent, lower, marking its biggest loss since Oct. 19 and the fourth-biggest point decline of the year.
The broader S&P 500 index lost 2.6 percent, while the tech-fueled Nasdaq lost nearly 2.3 percent.
The spark that sent major indexes lower was news that an analyst had downgraded banking giant Citigroup.
Citigroup shares, which finished 7 percent lower, tumbled after a CIBC World Markets analyst lowered her rating of the company's stock and warned that Citigroup may have to cut its dividend in order to raise $30 billion in capital. Citigroup decline to comment on the matter.

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