Wall Street falls as investors grow pessimistic

Wall Street wilted today as investors awaiting next week’s Federal Reserve meeting remained uneasy that fallout from the slumping housing market could bring more bank losses and pull the economy into recession.

Retreating oil prices and signs of strength in industries outside the financial sector could not keep the stock market from declining for a second straight day. Investors have entered into December, usually a winning month on Wall Street, very cautiously – most expect to see lower rates when the Fed meets next Tuesday, but the size of the cut, if any, is under debate.