US stocks slide again

US stocks have fallen for a second straight day as investors grow more worried that the financial sector is still suffering badly from the credit crisis.

The market was treading water for much of the session, then tumbled in early afternoon as concerns about financial companies intensified.

The Wall Street Journal reported today that Lehman Brothers Holdings Inc plans to raise cash. In the afternoon, analysts said rumours were swirling about the investment bank trying to borrow from the Federal Reserve.

According to preliminary results, the Dow fell 100.97, or 0.81%, to 12,402.85, after being down more than 160 points earlier.

The Standard & Poor’s 500 index dropped 8.02, or 0.58%, to 1,377.65, while the Nasdaq composite index fell 11.05, or 0.44%, to 2,480.48.