-NYSE down 254 (-3.7%) to 6,726 -DJIA down 391 (-3.5%) to 10,733.83 -S&P 500 down 37 (-3.2%) to 1,129.56 -Nasdaq down 82 (-3.2%) to 2,455.67 GLOBAL SENTIMENT Nikkei down 2%. Hang Seng down 4.9%. Shanghai Composite down 2.8%. FTSE-100 down 4.6%. DAX-30 down 4.9%. UPSIDE MOVERS (+) RHT continues evening gain that followed earnings beat. (+) GR sold for $18.4 bln. (+) BBBY chops in two directions after evening gain that followed earnings. DOWNSIDE MOVERS (-) MOS added to S&P 500, selling stock. (-) RAD reports narrower loss. (-) NCT selling shares. (-) ZMH initiated with Hold rating. (-) LOGI cuts FY outlook. (-) FDX beats with Q1 but cuts FY outlook. (-) GE reportedly mulls sale of European trailer-leasing unit. (-) QCOM down as report says India rejects terms of Internet service license. (-) UTX buying Goodrich. (-) INTC down despite analyst upgrade. (-) LULU down despite initiation with Buy rating. (-) HON backs outlook. MARKET DIRECTION Stocks end down over 3% and the Dow Jones Industrial Average's near-400 point dive is its deepest in five weeks. Global markets give a thumbs down to the Federal Reserve Bank's latest move to boost the sagging U.S. economy and revive worries over Europe's debt crisis. Late reports said European banks may be pursuing Middle East capital. Economic data was mixed; the index of leading economic indicators improved a day after the Fed downgraded its view of the risks facing the economy. Investors' downbeat mood stems from "bank runs in Europe" and rumors that some European banks are looking in the Middle East for capital, MarketWatch reported, citing chief investment officer at Fort Pitt Capital, Charlie Smith. The Fed said after a two-day meeting Wednesday that it would buy long-term Treasuries and sell their short-term counterparts in a $400 billion effort to revive borrowing and spending. The plan, called Operation Twist in a nod to a similar bank move in the 1960s, is meant to drive down longer-term interest rates. Wall Street economists were mixed in their assessment of the plan's likely effectiveness and few had glowing reviews. Even Fed members themselves were divided in their vote for the plan to "twist" the yield curve. In economic data, the Conference Board said that the U.S. economy could exhibit weak growth through the remainder of the year as it reported its index of leading economic indicators. The index grew 0.3% last month, compared with a 0.1% gain that was expected, according to a MarketWatch poll.