YAHOO [BRIEFING.COM]: Stocks eased up from session lows late in the day, but the broad market still booked its worst loss of 2012. The sell-off initially came with an increase in participation, but the pace of trade eventually moderated so that total share volume remained in line with recent trends.

Last week stocks scored their eighth weekly gain in nine tries to set new multi-year highs, but they began to show fatigue in the final days of that stretch. The struggle to extend the climb made many market participants both edgy and curious if stocks were on the cusp of a pullback. Against that backdrop news earlier this week that GDP for China is expected to slow to a 7.5% clip from an 8.0% pace was followed by word this morning that fourth quarter eurozone GDP remained at -0.3% revived concerns about global growth, effectively giving many traders an excuse to exit their positions.

Share volume was relatively strong in the early going. Many participants appeared anxious to sell after they had stood pat on their long positions, patiently watching stocks run higher in recent weeks. The rush to sell slowed as time passed, however, leaving overall share volume on the NYSE to total about 875 million shares. That's on the order of what has been averaged in recent months.

Financials were hit the hardest today. The sector suffered a 2.5% loss, but is still up more than 10% year to date. Defensive-oriented sectors like Utilities, Telecom, and Consumer Staples managed to limit their losses to less than 1%. Specifically, they fell 0.5%, 0.8%, and 0.8%, respectively. Altogether, though, the stock market suffered its worst single-session slide in nearly three months.

Widespread weakness spurred the Volatility Index more than 15% higher so that it is back near its monthly high. It had been at a multi-month low only two weeks ago.

Commodities were also clipped as traders took risk off of the table. The action was so aggressive that the CRB Index fell 1.6% in its worst single-session slide in two months. Oil was a particularly weak performer; futures prices fell 1.9% to $104.72 per barrel.

An interest in safety took Treasuries higher, driving down the yield on the benchmark 10-year Note to 1.95%, but that's still comfortably above last week's lows near 1.90%.

The US dollar and Japanese yen also benefited from a flight to safety. Buyers took the Dollar Index up 0.7% to trade at six-week high above its 50-day moving average. The yen was up in excess of 1% against the greenback, but by the closing bell it had eased back so that it traded with at 80.85 yen per dollar for a 0.8% gain.

Aggressive selling among commodities dropped the CRB Index for a 1.6% loss, which stands as its worst single-session slide in two months.

Oil was a heavy drag on the CRB. Futures prices fell 1.9% to $104.72 per barrel. Natural gas failed to sustain an early gain by falling to $2.35 per MMBtu for a loss of one penny.

Precious metals were sold aggressively, resulting in a 1.9% loss for gold prices and a 2.8% loss for silver. The two metals settled pit trade at $1671.60 per ounce and $32.81 per ounce, respectively.

Advancing Sectors: (None)
Declining Sectors: Utilities -0.5%, Telecom -0.8%, Consumer Staples -0.8%, Tech -1.1%, Health Care -1.4%, Consumer Discretionary -1.5%, Energy -1.6%, Materials -2.2%, Industrials -2.3%, Financials -2.5%DJ30 -203.66 NASDAQ -40.16 NQ100 -1.0% R2K -2.1% SP400 -1.9% SP500 -20.97 NASDAQ Adv/Vol/Dec 451/1.86 bln/2104 NYSE Adv/Vol/Dec 262/878 mln/2772