US stocks fall

Wall Street tumbled today as worries about losses in the financial sector, higher unemployment and lacklustre sales at retailers touched off fresh concerns about the economy.

The market’s pullback erased most of the 370-point gain the Dow logged the two prior sessions and perhaps shows the lack of solid conviction behind many of the investors’ recent bets.

Heading investors’ list of worries, insurer American International Group Inc. reported a loss of more than five billion dollars for the second quarter and the Labour Department said the number of newly laid off people seeking jobless benefits last week jumped to its highest level in more than six years. Weak sales reports from Wal-Mart Stores Inc. and other retailers added to investors’ unease.

Meanwhile, an announcement by the credit-ratings agency Moody’s Investors Service that it placed the long-term ratings of credit card lender American Express Co. on review for possible downgrade added to investors’ jitters.

According to preliminary calculations, the Dow fell 224.64, or 1.93%, to 11,431.43.

Broader indicators also slid. The Standard & Poor’s 500 index fell 23.12, or 1.79%, to 1,266.07, and the Nasdaq composite index fell 22.64, or 0.95%, to 2,355.73.