NEW YORK, AUG. 22 -- The stock market took another drubbing today, faced with relentless pressure from worries over soaring oil prices and rising interest rates.
The Dow Jones industrial average fell 43.81 points to 2560.15, extending its loss since July 17 to 439.60 points, or 14.65 percent of its value.
The last time the average recorded a lower close was on Jan. 30, when it hit its 1990 low of 2543.24.
Declining issues outnumbered advances by more than 3 to 1 in nationwide trading of New York Stock Exchange-listed stocks.
In morning trading Thursday in Japan, the key index on the Tokyo Stock Exchange fell nearly 1,000 points in light trading as investors grew more fearful of rising oil prices, traders said. The 225-issue Nikkei stock average lost 949.96 points, or 3.77 percent, ending the morning session at 24,206.95. The index shed 1,086.93 points Wednesday, its ninth-largest daily drop.
On the New York bond market, inflation fears kept dragging prices lower. Yields on long-term government bonds topped 9 percent for the first time since early May.
Stocks have attracted a few sporadic buyers in recent days, apparently spurred by hopes that the market has gone to extremes in its appraisal of the potential ripple effects of Iraq's invasion of Kuwait. But a good many analysts questioned whether the market has fully adjusted to the increased recession risks arising from the situation in the Middle East.
Stock markets in other financial centers around the world remain on the defensive amid fears of increased inflationary pressures and higher interest rates.
Among actively traded blue chips, General Electric dropped 1 5/8 to 60 1/4, Philip Morris 7/8 to 43, Coca-Cola 1 7/8 to 39 1/2, International Business Machines 1 1/2 to 99 and American Telephone & Telegraph 3/4 to 32 1/8.
In the banking and mortgage sector, Federal National Mortgage fell 1 1/2 to 26 3/4, Manufacturers Hanover 1 1/8 to 26 1/4, BankAmerica 1/2 to 20 1/4 and Chase Manhattan 3/8 to 17 1/4.
Regional telephone issues also were notably weak, as were utility issues generally. Nynex lost 2 to 70, Pacific Telesis 1 1/4 to 38 1/2, Southwestern Bell 1 1/2 to 49 3/8, Bell Atlantic 1 3/4 to 42 7/8 and Southern New England Telephone 1 to 29 1/8.
USAir fell 1 7/8 to 15, after the company announced it would fire about 1,500 probationary employees and trim expansion plans. The firm also said it would delay fare increases.
National Intergroup gained 1 3/8 to close at 16. It said it is seeking buyers for itself and its drug distribution subsidiary as part of an accord reached with a group of investors led by Washington's Melvyn Estrin.
MCI was the most active issue on the over-the-counter market, falling 1/2 to 33. The Washington-based long-distance carrier Tuesday said it would take a $500 million write-down on old equipment, perhaps wiping out its third-quarter profit.
Shares in Nike fell another 5 3/8 to 62 after the company announced it would not buckle under to demands from Jesse Jackson's Operation Push concerning employment or business opportunities for blacks.
As measured by Wilshire Associates index of more than 5,000 actively traded stocks, the market lost $45.73 billion, or 1.50 percent, in value.
The NYSE's composite index slumped 2.72 to 174.22. Standard & Poor's industrial index fell 6.17 to 373.64, and S&P's 500-stock composite index was down 5.31 at 316.55.
The Nasdaq composite index for the over-the-counter market dropped 4.84 to 374.84.
At the American Stock Exchange, the market value index closed at 324.39, down 2.95.