New York - US stocks plummeted again on Thursday and the Dow Jones Industrial Average dropped below 9,000 points as a series of US and global efforts to tackle the financial crisis have failed to calm the widespread fears of investors.

Both the blue-chip Dow and broader Standard & Poor's 500 tumbled more than 7 per cent. The Dow has now lost more than 35 per cent of its value since reaching all-time highs above 14,000 one year ago. The S&P's seven straight days of losses mark the longest downward streak since 1996.

The plunges came as the US Treasury indicated it would buy up shares in banks to help inject capital into shaky financial institutions.

But US officials have also continued warning that a 700-billion- dollar rescue package would take some time to have an impact on the massive credit crunch that has struck the US economy.

"It took us a while to get here and it's gonna take us a while to get out of this thing," White House economic advisor Edward Lazear told broadcaster CNN.

International Monetary Fund Managing Director Dominique Strauss- Kahn warned Thursday that the world was on the "cusp" of a recession as the crisis has spread well beyond the United States.

The Dow plunged 678.91 points, or 7.33 per cent, to 8,579.19. The broad-based Standard and Poor's 500 tumbled 75.02 points, or 7.62 per cent, to 909.92. The high-tech Nasdaq Composite index shed 95.21 points, or 5.47 per cent, to 1,645.12. (dpa)