Bush fails to stem decline

US stock markets tumbled at mid-session yesterday as a weak dollar weighed on financial companies, with an economic address by President Bush doing nothing to stem the decline.

At about 12:25pm ET, the Dow Jones industrial average fell 318.03 to 8,366.50. The Nasdaq composite index lost 25.18 to 1,348.32. And the Standard and Poor’s 500 index fell 30.54 to 890.85.

The morning mood was soured as the dollar hit parity with the euro for the first time in two years. The US currency also declined versus the yen. American Express, JP Morgan and Citigroup all fell early on. Jefferies & Co chief investment strategist Art Hogan said the weak dollar, combined corporate problems, is hurting the sector. “There’s also a psychological element [concerning the dollar] that the US is being pulled off its pedestal,” said Wall Street Strategies CEO Charles Payne.