"There is a lot of uncertainty out there. When you have uncertainty, the market drifts," said Michael Murphy, head trader at Wachovia Securities.

The Dow closed down 114.91, or 1.2 percent, at 9,502.80, according to preliminary calculations. The drop erased all of the Dow's 100.45-point advance yesterday, when stocks rose in a late burst of buying driven by technical factors.

The broader market also declined. The Nasdaq composite index fell 22.24, or 1.5 percent, to 1,496.88, offsetting the 21.94 it gained yesterday.

The Standard & Poor's 500 index stumbled 10.70, or 1.1 percent, to 1,009.56, more than negating yesterday's gain of 6.66.

A big pull on the market today came from a 0.9 percent decline in retail sales for May. It was the largest drop in six months and was due to decreased spending on cars and clothes, said the Commerce Department.

The reading on retail sales was also weaker than many analysts expected. It overshadowed a positive economic report from the Labor Department, which said wholesale prices fell 0.4 percent in May. The decline in the Producer Price Index, which measures inflation pressures before they reach consumers, beat analysts' forecast of a 0.1 percent increase.

Doubts about the strength of the economy, and concerns about a third year of decline on Wall Street, have been big factors in the market's protracted slide. Stocks are headed for their fourth straight weekly decline with the Dow having dropped

8 percent since May 17. The Nasdaq has fallen 14 percent since then, while the S&P has lost nearly 9 percent.

"People are hesitant to make big bets," Murphy said. "People say we will be lucky to end (the year) up 5 percent."

Investors are also worried about the integrity of corporate accounting and business ethics. Conflicts overseas and fears of more terrorism have been hanging over the market as well.

"This market is more difficult than past markets. ... We have always dealt with the economy and earnings, but we never had to worry about people blowing up buildings or airplanes. That is something new that investors have to deal with," Murphy said.

The string of negative factors have sent the market indexes near the September lows that followed the terrorist attacks. The S&P is closest, standing just 43.76, or 4.5 percent, from its Sept. 21 closing low of 965.80.

Analysts are hoping the market will bounce off September's depressed levels, rather than break through them.

"I think we will test and retest (the lows) and then be in position for a nice summer rally. The market looks cheap," said Peter Cardillo, president and chief strategist of Global Partner Securities Inc.

Retailing and auto stocks fell following today's retail sales report. Wal-Mart stumbled $1.80 to $56.50, while DaimlerChrysler sank $1.71 to $45.69.

Financial issues fell after Merrill Lynch reduced its yearly earnings estimates on the sector by 2 to 3 percent.

Morgan Stanley fell $1.46 to $42.29, while Lehman Brothers stumbled $1.34 to $58.02.