Stocks Swoon on Subprime Fears

Worries that a broader bond shakeout could tighten credit sent equities reeling

The tight trading ranges and muted market activity of the past couple of sessions gave way to a full-scale sell-off on Wednesday. Stocks fell sharply as subprime mortgage fallout fears were fanned by the uncertain fate of two major hedge funds managed by Bear Stearns Cos. (BCS).

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