U.S Market Plunge on Credit Woes


Stocks tumbled on Monday as investors worried rising mortgage defaults and credit market losses will drag on the economy, fueling fears that consumers will slash spending during the vital holiday season.

The decline, led once again by big drops in financial services stocks, erased year-to-date gains for the benchmark S&P 500 index.

So far this month, the S&P 500 has fallen 9.2 percent, putting Wall Street on the verge of its worst one-month slump in five years. On a points basis, the Dow is less than 200 points away from its worst monthly slide ever.

Citigroup Inc, the largest U.S. bank, slid below the $30 mark on Monday for the first time since October 2002.

The sell-off in financials overshadowed optimism early in the session fed by reports that the holiday shopping season's unofficial kick-off on Friday was stronger than many had expected. Retailers soon lost their bid as well with the S&P retailer index falling nearly 3 percent.


Reuters
11/26/2007 4:02:00 PM