US stocks slide on financial sector worries

ABS-CBN News

Posted at Jun 20 2008 09:59 PM | Updated as of Jun 21 2008 05:59 AM

Agence France-Presse

NEW YORK - US stocks slid lower in opening trade Friday as investors fretted about the troubled financial sector and a rally in crude oil prices that renewed inflation concerns.

The Dow Jones Industrial Average dropped 85.41 points (0.71 percent) to 11,977.68 and the tech-dominant Nasdaq composite fell 22.38 points (0.91 percent) to 2,439.68 in the first exchanges.

The Standard & Poor's 500 index shed 9.17 points (0.68 percent) to 1,333.66.

On Thursday, the major indices made gains in volatile trade after a two-day selloff. The Dow rose 0.28 percent, the Nasdaq a more robust 1.33 percent and the S&P 500 index edged up 0.38 percent.

In a day bereft of major economic data, investors were focused on signs of further trouble in the financial sector after Citigroup's warning Thursday of further "substantial" writedowns.

"The market tone is lousy," Briefing.com analysts said in a client note.

"The underlying concern remains the financial sector. This morning, there is additional concern about European bank stocks," they said. "It will take some time for the current poor underlying sentiment to shift significantly."