Fears of a new recession caused the stock market to take a deep plunge on Thursday making it the worst day since the financial crisis in 2008.

The Dow Jones industrial average declined 512.76 points, or 4.13 percent, closing at 11, 383.68.

Almost every market index took a dive on Thursday with Standards & Poor's 500 falling 60.27 points, or 4.78 percent, and the NASADQ tumbled some 5.08 percent as well.

It is the biggest weekly drop for all three indexes since May 2010, according to the Washington Post.

Along with the indexes, the prices of oil and gold also slid, as investors moved their money into US Treasury bills amongst fears of economic turmoil in the U.S. and Europe. The yields on the short-term Treasuries were negative, and so investors were paying the U.S. government to hold their money, according to The Christian Science Monitor.

"We are continuing to be bombarded by worries about the global economy," said Bill Stone, the chief investment strategist for PNC Financial, to The Associated Press.

Investors began worrying two weeks ago when there was intense debt ceiling negotiations in Washington to prevent the government from defaulting and not being able to cover its debt. When Washington came through at the 11th hour, but the U.S. economy didn't show any rebound signs and selling fast-tracked.

Couple that with the concerns in Europe regarding the troubled economies of Italy and Spain, which might need help from the European Union, and investors' fears have been increasing.

The European Union already gave some financial assistance to Greece and Ireland, which have struggled to pay their debts. And a financial rescue package for Italy or Spain might be more than the group of countries can handle, according to The Associated Press.