Small-cap stocks remained in negative territory into mid-session, pressured by worries about corporate profitability in a sluggish economic environment around the world. At 12:21 p.m. ET, the Russell 2000 (NYSE:IWM) was off 10.23, or 2.07%, at 482.87; meanwhile, losses in the Dow and S&P 500 were running about 1% deeper than what was seen in small caps.

European shares tumbled about 4% for the day, following step with steep declines on many Asian bourses, which clearly sent a chill through American equities as well. Declines in Russia got so bad that they halted trading until Thursday with a 12% loss in tow. Central bank officials in Russia actually raised rates today, hoping to fight capital flight and inflation. Credit futures are near contract highs, with European bond futures making contract highs today, which shows that money flow is into credit instruments, not equities.

Meanwhile, crude oil prices tumbled to 20-month lows today, slipping below $59 a barrel, which kept energy and commodity stocks on the defensive. Looking at S&P sector activity so far today, the only area showing decent strength is agriculture products. Meanwhile, real estate services are getting hammered; tire and rubber and automobile manufacturers are hurting, wireless telecoms are getting clobbered, insurance stocks are down hard, metals and mining shares are down, life insurers are taking a hit and coal stocks are getting smoked.

As for the insurers, analysts at Goldman Sachs lowered ratings on the group . . .

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