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How Low Can It Go?

Panick selling sends markets to 12-month lows.

The Dow Jones Industrial Average plunged nearly 500 points today before rebounding slightly as weak economic data from China panicked investors already concerned about the European debt crisis and an increasingly gloomy U.S Federal Reserve, which yesterday announced new stimulus efforts. 

The markets are on track to close at a 12-month low, while the Volatility Index, also known as the market’s fear index jumped 13.92 percent to above 42.