Stocks in the US retreated from lofty heights today after a European Central Bank official pointed to rising price risks and a major Wall Street bank lowered its sales expectations for Chinese internet company Baidu.com.

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.