The three major stock indices each fell over 2.5% today, erasing gains the Dow made over the month and leaving the S&P 500 and Nasdaq to fall 2% and 3.6% respectively for the month. The NY Times reports, "The drops were led by stocks in banks and financial firms, which investors abandoned in light of a Commerce Department report that showed consumers were still in distress. Consumer spending in September dropped by the largest amount in nine months, the report said, a dreary data point that met Wall Street expectations but reinforced the slow, halting recovery of the United States economy."

Wells Capital Management's James Paulsen told Bloomberg News, "I’m well-spooked for the Halloween weekend. We can talk about disappointing consumer confidence data. Bank charge- offs are still happening. There’s a growing sense on the Street that there’s got to be a pullback."

More gloom and doom billionaire George Soros said a global economic recovery is "liable to run out of steam" with a "double dip" possibly coming in 2010 or 2011 and investor Wilbur Ross thinks there's a huge commercial real estate crash on the horizon: "All of the components of real estate value are going in the wrong direction simultaneously. Occupancy rates are going down. Rent rates are going down and the capitalization rate -- the return that investors are demanding to buy a property -- are going up."