Major US stock market indices slid Friday
to a three-month low, led by consumer and technology companies, as oil prices
jumped and analysts said demand for electronics may weaken.
Declines came after Standard & Poor's said it may cut credit ratings
on automakers General Motors Corp and Ford Motor Co because of higher fuel
costs, sending GM to its lowest level since 1982.
The price of crude oil rose 2.69 dollars to 134.62 dollars per barrel.
Software company SanDisk Corp posted its worst drop in eight months on
Citigroup Inc's prediction that earnings will be less than estimated because of
diminished overseas demand, according to the Bloomberg news service.
Citigroup led financial shares to a five-year low as UBS AG said the biggest US
bank may post a second-quarter loss.
The blue-chip Dow Jones Industrial Average lost 220.40 points, or 1.83 per
cent, to 11,842.69. The broader Standard & Poor's 500 dropped 24.90 points,
or 1.85 per cent, to 1,317.93. The technology- heavy Nasdaq Composite Index
lost 55.97 points, or 2.27 per cent, to 2,406.09.
The US currency slipped against the euro to 64.07 euro cents from 64.48 euro
cents on Thursday. The dollar was also down against the Japanese currency at
107.33 yen from 107.93 yen on Thursday.
Gold dropped 50 cents to 903.70 dollars per fine ounce, dpa reported.