Stocks tumbled sharply on Wall Street today as a second-quarter profit warning from Asda owners Wal-Mart Stores overshadowed strong economic news and a sharp drop in oil prices.

Confident US investors, buoyed by positive earnings reports from the financial sector and bullish corporate outlooks for 2005, returned to the market today after weeks of uncertainty, pushing stocks sharply higher.

Wall Street extended its gains into a fourth straight day today after three economic reports gave investors assurance the economic recovery was firmly under way.