The Nasdaq falls into correction territory on another ugly day for stocks

All three major stock indexes closed sharply lower and the Nasdaq fell into correction territory -- defined as a 10% drop from its most recent peak. The index closed down 4.1% for the day.

The S&P 500 (SPX), the broadest measure of the US stock market, closed down 2.8%, and the Dow (INDU) ended down 2.3%, or 632 points.