Wall Street slumps lower on troubled financial services

Business Materials 4 June 2008 03:25 (UTC +04:00)

US stocks fell for a second day as growing speculation that Lehman Brothers will be forced to raise more capital led a slump in financial shares and a drop in oil prices pushed down energy companies, dpa reported.

Lehman, the fourth-biggest US securities firm, slid to its lowest level since August 2003 on concern it may report its first-ever quarterly loss.

Wachovia Corp, the fourth-largest US bank, declined the most since April on a report billionaire investor Michael Price is betting the stock will drop. Exxon Mobil Corp and Chevron Corp led energy producers lower as crude stocks retreated for the first time in three days.

The blue-chip Dow Jones Industrial Average lost 100.97 points, or 81 per cent, to 12,402.85. The broader Standard & Poor's 500 Index fell 8.02 points, or 58 per cent, to 1,377.65. The technology-heavy Nasdaq Composite Index dropped 11.05 points, or 44 per cent, to 2,480.48.

The US currency edged up against the euro to 64.75 euro cents from 64.34 euro cents on Monday. The dollar swung up also against the Japanese currency to 105.13 yen from 104.54 yen on Monday.