US stocks slump

US stocks plunged today, driving the Dow Jones industrials down more than 240 points in their second-biggest drop of the year as troubles piled up for subprime lenders, who lend money to people with a low credit rating.

Investors, bracing for a wilting US economy, fled the already deflated subprime mortgage sector while problems increased for lenders such as New Century Financial Corp, Accredited Home Lenders Holding Co and General Motors Acceptance Corp's residential unit.