The U.S. stock market ended lower after an attempt to curb the economic crises through the cutting of rates by the Federal Reserve and numerous other central banks around the world. The Dow decreased even more off the worst five day drop since 9/11 of 13%. The Dow lost 189 points, or 2%, closing at 9,258, while the Nasdaq dropped 0.83% and the S&P fell 1.13%, with the indices at 1,740 and 985 respectively at the closing bell.

The global reduction of rates from many central banks wasn’t enough to get Wall Street thinking positive thoughts. Early this morning, the Fed announced it is cutting key lending rates 50 basis points from 2% to 1.5%. In coordination, the European Central Bank and the Bank of England each dropped their rates 0.5% to 3.75% and 4.5% respectively. The Bank of Canada, Swiss National Bank, China’s central bank, and the Swedish Riksbank were also in on the organized rates cut.

On another note, the August pending home sales rose 7.4% after falling 2.7% in July. Given yesterday’s credit report noting available credit in August fell drastically, many homes pending on the buyer’s credit might fall through.

In other markets around the world, Japan’s Nikkei closed down 9.4%, China’s Hang Seng dropped 8.2%, Shanghai decreased 3.0%, and India’s BSE ended 3.8% lower. Following in the Asian markets’ footsteps, the European exchanges all closed in the red as well. The FTSE 100 dropped 5.18%, the DAX dropped 5.88%, and the CAC 40 was down 6.31%.

At 11:30 this morning, the Department of Energy reported oil supplies climbed 8.12 million barrels to 302.6 million barrels in the week ended Oct. 3. This beats the forecasted supply increase of 2.2 million barrels. Yesterday the DoE decreased the 2008 forecast on global oil demand by 340,000 barrels. Crude oil fell $1.09 to $88.97.

Gold prices increased 2.81% to $903.10 as risk averse investors hedge against potential inflation problems that might be caused by the international rates cut. Spot gold has risen 25% since mid-September as the deepening financial crisis spreads from the United States to Europe and investors look for a safe haven. Despite this drastic increase, gold is still off the all-time high of $1,030.80, a level reached this past March.

Making the headlines today, Bank of America, (BAC: 22.10, -1.67 (-7.03%)), sold 455 million of common stock today at $22 per share, raising a total amount of $9.76 billion after expenses. According to Wall Street analysts, BofA’s choice to raise capital and cut the annual dividend was a wise decision. Bank of America also agreed to buy back $4.7 billion in auction-rate securities it sold to 5,500 investors before the market collapsed in February.

Citigroup, (C: 14.40, -0.75 (-4.95%)), has announced that it will slash 500 mortgage-related jobs, and halt business with 90% of the independent mortgage brokers it works with. This cut represents about 5% of the company’s mortgage staff across the United States, and reduces its business with brokers from 9,500 to 1,000 companies.

That’s all for today, catch me tomorrow, same time, same place, for the Bullish Banker’s Daily Market Recap